Health Care May Benefit Most From Election Result
The sharp reversal in tech stocks is getting all the attention post-election, but the biggest beneficiary of a divided government may be the health-care sector. After underperforming the S&P 500 severely since April, under the pressure of likely health-care and tax overhaul under a Blue Wave, the group pressed through its downward-trending resistance line the day after the election. As we noted in our sector review a few weeks ago, health care was trading at extremely depressed valuations despite clear growth prospects. Without the overhang of potential policy changes, those possibilities may now start to benefit the group.
The sharp reversal in tech stocks is getting all the attention post-election, but the biggest beneficiary of a divided government may be the health-care sector. After underperforming the S&P 500 severely since April, under the pressure of likely health-care and tax overhaul under a Blue Wave, the group pressed through its downward-trending resistance line the day after the election. As we noted in our sector review a few weeks ago, health care was trading at extremely depressed valuations despite clear growth prospects. Without the overhang of potential policy changes, those possibilities may now start to benefit the group.