When valuations across the stock markets are high, one should look for sectors with macro tailwinds. Sectors and stocks with structural tailwinds do well in the long term, even if they come under pressure in the short term due to market conditions. And, remember, investing is about the long term. Healthcare is one such sector – and the numbers have clearly shown this in the last couple of years. There is one possible event risk which can hit the sector. But even if that were to happen, experience suggests it will be taken care of in the long term.
