Eh, What's Up, Doc? Healthcare Stocks Lookin' Like a Smart Hiding Place!

Of Course This Means War(ren Buffett): Healthcare Hiding Spots!

What's up Doc? Bugs Bunny here reporting live from the financial front lines! Seems like the market's about to get a little... *spicy* in the second half of the year. All that volatility talk got me thinking – where can a rabbit hide his carrots... er investments? Well some folks are saying healthcare stocks might just be the burrow to beat!

Sufferin' Succotash! These Stocks are Cheap!

Apparently these healthcare fellas are just starting to look cheap see? Like when Elmer Fudd thinks he's finally gonna catch me! The S&P 500 healthcare stocks are selling at 17 times forward earnings. That's below their historical valuation folks. Now I ain't no financial genius but even *I* know that's a good deal! The entire S&P 500 sells for 23 times forward P/E. "Ain't I a stinker?" You bet I am especially when I spot a bargain!

That Lilly's a Stinker! (But the Rest Are Golden)

Now hold on a cotton pickin' minute! There's this one company Eli Lilly that's kinda skewin' the numbers. They're tradin' at 36 times forward earnings. Dave Sekera from Morningstar says that they're overvalued. Take them outta the mix and suddenly the rest of the healthcare sector looks even *more* undervalued! It's like when Yosemite Sam's all riled up but you just gotta ignore him and focus on the prize!

Dow's the Way to Go! (At Least for a Day)

The Dow Jones Industrial Average which is loaded with healthcare bigwigs like UnitedHealth Group Johnson & Johnson Amgen and Merck even had a rally the other day! Meanwhile the S&P 500 and Nasdaq Composite which are all about those techy fellas were taking a breather. Shows ya don't it?

Margin of Safety? Now You're Talkin' My Language!

These healthcare stocks also got dividend yields! Sekera says that these cheap valuations and above average dividend yields give investors a "margin of safety" heading into the second half of the year. And you know what I say to that doc? “Of course you realize this means war!” A *smart* war that is. One where your carrots... err investments... are safe and sound!

Be Smart Like a Wabbit! (And Choose Wisely)

Sekera is also lookin' at other parts of the market preferring value stocks over growth issues and small caps over large caps. As for me well I'm just a humble bunny but I always say: "This looks like a job for a genius!" And sometimes that genius is just a rabbit who knows a good deal when he sees one! So keep your eyes peeled folks and remember – be vewy vewy quiet... we're huntin' for bargains!