Obamacare Blowing Up Healthcare Stocks
by Wynton Hall 24 Nov 2013, 3:30 PM PDT
President Barack Obama and the Obamacare debacle may be highly unpopular with Americans, but the healthcare industry that donated a staggering $22,471,562 to Obama's 2008 campaign is posting record profits amid the fallout.
So far in 2013, the S&P healthcare sector index has gained 37.5%, making it the S&P 500's best-performing sector, reports Reuters.
"Healthcare is the place to be. It's a hot area," said U.S. Global Investors Inc. top trader Michael Matousek. "People want stocks in healthcare, industrials and consumer discretionary. That's where tactical investors have been focused, and that's where the money has been flowing."
Cato health policy analyst Michael Tanner told CNBC that what is bad for citizens has been a boon for insurance companies.
"Customers aren't doing well but the insurers are doing great," said Tanner. "Insurers by and large are getting new customers."
Some healthcare companies are enjoying record gains. Aetna, Cigna, UnitedHealth, and Gilead have recently been trading near 52-week highs. According to CNBC, Gilead is up almost 200% since Obamacare was enacted. Amgen is up over 90%. Biogen has been an even bigger winner, posting gains of over 300%.
Prior to Obamacare's enactment, Obama received a staggering $22,471,562 in campaign donations from the healthcare industry during the 2008 election cycle, a haul nearly three times greater than his Republican challenger. Whether this fact will complicate Obama and Democrats' desire to blame the healthcare industry for Obamacare's woes remains to be seen.