Earlier this year Barron's had an article discussing health care. The gist of the article was health care -- which has languished for the last few years -- may make a comeback this year. The article focused on earnings and new products. I would add the added dimension of safety. As the economy slows down, investors may start to switch assets into safer investments -- especially investments that are a bit more immune to economic fluctuations.
Two charts indicate this may be happening. Here is a chart of the health care ETF. The chart has enjoyed a slightly upward moving rally since late 2005. Recently the ETF has broken through resistance just below 35 on a good volume spike.
Here is a chart of the big-Pharma ETF, PPP. This chart has a classic triangle consolidation and has broken out of the pattern on good volume as well. This chart still has a major point of resistance just a bit below 54.