There’s a transition going on in the stock market right now. Money managers are selling the big Internet stocks. Google (GOOG), Facebook (FB) and even Alibaba (BABA) are expected to have slow profit growth next year. GOOG’s growth is expected to be 18%, and FB is worse with 14%. BABA’s number is 36% but most of that is expected the 2nd half of 2015. These companies are spending big to keep their leadership status, but that’s going to hurt profits, and slowing profit growth isn’t a bullish sign.
Healthcare is becoming the place to be in the market. The big Biotech stocks have better profit growth than the big Internet names, and are cheaper too. Plus, we are in the late stages of a Bull Market, which is usually the time to invest in Healthcare. My five Healthcare stocks for 2015 are Celgene (CELG), Actavis (ACT), Alexion Pharmaceuticals (ALXN) and Gilead Sciences (GILD), of which we already own, and Biogen (BIIB), which I’m looking to buy.