NEW YORK: Investors are diversifying bets in the healthcare sector, as the rush to develop treatments for Covid-19 has driven up prices for some pharmaceutical stocks.
A record 48% of fund managers are overweight healthcare stocks, a BofA survey showed, and the S&P 500 healthcare sector is up nearly 34% since its March low. Hopes for a treatment have also sparked outsize rallies in the shares of companies such as Moderna and Inovio Pharmaceutcials, up 253% and 327% since the start of the year, respectively, as of Friday’s close.
In recent weeks, news of potential treatments or vaccines to fight the pandemic have occasionally fueled swings in broader markets.
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