(Washington)
The reality of the political environment in the US is making one thing very clear: it is a tentative time to buy or own healthcare stocks. While healthcare companies are currently performing well, the market is growing increasingly bearish about them, and with good reason. Democratic candidates have proposed an array of new national healthcare plans that all have degrees of disruption, some of them massive, to the status quo. That means the healthcare industry is facing a problem that is very hard to control and could cause extensive changes to their current operating paradigm.
FINSUM: Unless healthcare gets so beat up that it is worth taking a risk on the stocks just as a bet that the Democrats don’t win the election, it seems like there is asymmetric risk reward in the sector right now.
