Should health care remain a safe haven?

Service companies that provide care are less-favored generally than drug and medical device makers. The gear is seen as more valuable than the service.

Edward Kennedy 2008 DNC speechDespite a lot of talk about reform, including a last hurrah for universal health coverage, stock analysts still consider health care stocks a safe haven for investors.

Drug stocks often pay big dividends, and at recent prices the sector is filled with what look like bargains.

The "all-star" list of Motley Fool is heavy on drug technology, with Medtronic and UnitedHealth Group joined to a collection of pharma all-stars.

Some analysts call themselves bullish in the short, long and medium term. Rising demand and technology are the reason.

Service companies that provide care are less-favored generally than drug and medical device makers. The gear is seen as more valuable than the service.

Contrarians may argue that Americans spend more of their income on health care than people anywhere else, and most reform plans would cut that.

But costs are rising under every system, the optimists respond. Medical technology has pricing power. Intuitive Surgical, which makes the DaVinci robot surgeon, is still sky-high, despite insider sales which have some smelling a bubble.

So, how big a part does health care play in your portfolio?

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