Business
Healthcare Investing Is Now an AI Short in Disguise
Forget drug pipelines and clinical trials. These days, every healthcare trader has to be a part-time AI specialist just to keep up. That’s because what matters most to large-cap pharma and health insurance stocks right now is the momentum of the artificial-intelligence boom.
For years, healthcare and semiconductor stocks weren’t particularly tied to each other. They would sometimes drift in the same direction, but the relationship was loose. That changed in recent months, with the VanEck Semiconductor Exchange-Traded Fund (SMH) and the State Street Health Care Exchange-Traded Fund (XLV) moving into negative correlation, according to FactSet data. In other words, they increasingly go in opposite directions: when chips sell off, healthcare has tended to catch a bid.
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