After a heck of a run, the fund has been selling off in the past month or so. If you have held this fund for a while and haven’t taken profits recently, I would strongly urge you to do so, as valuations have certainly become very rich. I expect that we will see more downside in the coming weeks. By taking some money off the table, you can help protect some of the gains you’ve seen in the past several months.
Longer term, I still like the healthcare story. As the populations in the developed world continue to age, the demand on healthcare products and services are likely to continue to increase. The development of the emerging markets will also help to drive demand for the sector, all of which paints a strong picture for the medium to long term.
However, given the strong run and the level of valuation, I expect more volatility in the coming weeks and possibly months.