Is anyone surprised that healthcare stocks (XLV), and biotechnology stocks, in particular (IBB), are among the top performers so far this year, after being the worst in 2016? Mean reversion is real, and there are fundamental reasons why this reversion trend may continue. And if you do your homework, there are individual stocks and active funds that we believe may be an even better way to play this fundamental trend. This article highlights a few...

For example, as we wrote at the end of December, here are three relatively attractive healthcare-related stocks...

Gilead Is a Hail Mary: 3 Better Stocks to Consider

Also, we consider this healthcare closed-end fund particularly attractive, it's up 10% already this year. (Members-Only Report)...

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Jan 3, 2017

This 11% Yield CEF Has Big Upside Potential

Jan 3, 2017

If you like big yield and significant price appreciation potential, then this particular closed-end fund (CEF) is worth considering. It’s a sector-specific CEF that yields nearly 11% (paid monthly). And not only is the sector an attractive contrarian play for multiple reasons right now, the fund is trading at a double-digit discount to its NAV which suggests it may have even more upside rebound potential ahead.

Jan 3, 2017

Also worth noting, there are several attractive sectors from a contrarian/mean reversion standpoint that have not already rebounded this year, and there are fundamental reasons to believe they will. For example, real estate and utilities, as we've recently written about here...

This 9% Yield Real Estate CEF Is Attractive

and here...

Real Asset CEF Yields 8%, Pays Monthly, Big Discount to NAV

Worth considering, high yielding business development companies (BDCs) have continued to rise this year. We believe investors should be cautious in this space. For example, we sold one of our big-dividend BDCs recently (it happens to be a very popular one), and we continue to now own just one BDC. You can read about that here...

New Trades: Income Equity Strategy (Members-Only)