3 Sectors to Buy While They’re Down and 1 to Walk Away From
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Contrarian investors Jeff Clark and Andy Swan identify opportunities in beaten-down sectors, including financials, healthcare, and software. They recommend buying stocks like American Express, Molina Healthcare, and Hims Hers Health, which have been oversold due to negative sentiment and regulatory fears.
The S&P 500 has fallen 400-500 points since January, causing a shift from optimism to fear. Contrarian investors Jeff Clark and Andy Swan see opportunity in this disconnect. They target three sectors: financials, healthcare, and software. In financials, Clark likes American Express, which has shed 20% of its value since the start of the year. Insiders have bought into the stock, indicating confidence. Swan also recommends Robinhood, which has pulled back significantly but still shows strong consumer adoption. In healthcare, Clark likes Molina Healthcare and Oscar Health, while Swan recommends Hims Hers Health, which has accelerating app downloads and growing product purchases despite regulatory noise. The software sector is also seen as misunderstood, with Clark arguing that AI will not kill software-as-a-service, but rather create new opportunities.
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