It seems that history has repeated itself for the Clintons and the healthcare industry.
Deutsche Bank’s David Bianco noted that healthcare sector stocks typically trade at a 10% premium to the S&P 500. However, Bill and Hillary Clinton have caused some rough patches for the industry over the past 20 years.
The first instance was during the early 1990s, when the markets feared significant changes to the healthcare industry, including introduction of universal healthcare from then-President Bill Clinton’s administration based on a bill written by Hillary.
Around twenty years later, the current industry selloff, as shown in Bianco’s chart, is at least partly attributable to a tweet and subsequent policy plan sent out by Hillary Clinton in late September. This time she advocated for various regulations that could cap prices for certain pharmaceuticals and force companies to spend more on research and development.
Despite the setback, Bianco wrote that he expects the sector to bounce back strongly in 2016, as the political currents prevent any major changes.
“Valuations are similar or even less demanding now than during the bottom of the 1993 sell-off,” wrote Bianco. “Moreover in 1993, Democrats held a Congress majority and when Republicans took it in 1994, Hillary Care stopped. Today, Republicans control Congress.”
Join the conversation about this story »
NOW WATCH: The killer jobs report could mean a rate hike in December
from WordPress http://ift.tt/1QGs3QU
No comments:
Post a Comment