Healthcare provider stocks such as Aetna (AET), United Health Care (UNH), Well Point (WLP), and Humana (HUM) may provide a safe haven in 2008 as recession looms.
NEW YORK (CNNMoney.com) -- As the market flirts with recession, many of the top performers are healthcare providers, suggesting that the sector could be returning to its old reputation as a safe port in a storm.
"Traditionally in times of economic turmoil, healthcare is a place to run, because it is viewed as a safe sector, because people continue to use [healthcare] even in difficult times," said Angela Maria Larson, drug industry analyst for the Susquehanna Financial Group.
The numbers bear her out. The American Stock Exchange Pharmaceutical Index is up more than 3 percent this year, while the exchange as a whole is flat. Of the top 10 performers listed in Thomson Financial's Baseline, six are healthcare companies.
"[The healthcare sector has] underperformed for the last year or so, so we're at a point where it's becoming a safe harbor at attractive valuations," said Larsen, who believes that the trend will continue.
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