Healthcare stocks may struggle to gain momentum as Democrats prepare to take over Congress.
Jared Holz, who covers healthcare for Mizuho, says the outlook for the sector is uncertain because of likely gridlock between lawmakers.
"The next couple of years I really can't see too much happening," the firm's sector specialist told CNBC's "Fast Money" on Wednesday. "I'm not sure you want to own everything, but you can pick and choose the names… Pharma is trading more expensive than tech for the first time in 20 years. So, I backed away from pharma. I would look at medtech."
The State Street Health Care Select ETF (XLV) jumped 3% a day after Election Day.
"You had this very weird situation where typically you wouldn't have all of these categories work in tandem, and they did. So, I think some things just a little bit off," said Holz, a day before healthcare got swept up in Thursday's Wall Street sell-off.