Healthcare trade offers demand characteristics not tied to AI: Wealth Enhancement's Yoshioka
Speakers
Ayako Yoshioka
— Senior Investment Strategist, Wealth Enhancement
Summary
Ayako Yoshioka discusses using healthcare and industrials to diversify away from concentrated tech hardware. She highlights managed care as particularly attractive heading into the second half due to favorable Medicare rates and underwriting. Industrials also offer a diverse set of drivers and have outperformed tech this year.
- Health care sector gained nearly 7% in June, its best month since November 2025.
- Yoshioka recommends diversification into health care and industrials to balance the tech hardware rally.
- Industrial sector has outperformed tech year-to-date, driven by aerospace, defense, and AI electrification.
- Managed care is seen as having further upside due to positive underwriting and a 2.5% Medicare Advantage rate increase for 2027.
- Johnson & Johnson and Eli Lilly are noted as leading pharmaceutical names but without a distinct thesis.
- AI productivity gains for health care are still underappreciated.
Ideas
Health care diversifies away from tech
The health care sector serves as a balance to the strong rally in tech hardware, particularly semiconductors. It benefits from a rotation catch-up trade, broad internal drivers including pharma and managed care, and recently posted its best month since November 2025.
Managed care has favorable setup ahead
Managed care has been performing well, and the Medicare Advantage rates set at 2.5% for 2027 should be positive. Underwriting has been favorable for these companies, leaving room for further gains in the second half of the year.
Up Next
This CNBC video, published July 01, 2026, features Ayako Yoshioka discussing XLV, Managed Care Companies. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Ayako Yoshioka · Tickers: XLV, Managed Care Companies