As the primaries wind down and the 2008 election year politicking reaches full swing, there is one major industry that is going to get a boost no matter the outcome, that is healthcare.
Election year politicking is dirty to say the least, Congressional bills get more and more ridiculous as each side hopes to present the other as complete trash. During cycles like this bills regarding guns, marriage, healthcare and military expenditures come full circle to be voted on.
One industry that benefit’s the most from electioneering the house vote is healthcare. The constant bombardment of child health care bills from the left and promises for universal health care from democratic candidates shows that the health care industry is going to start getting some free money. Cigarette taxes and uncontrolled spending abound, expect the amount of money flowing to healthcare companies to boom under either presidential party.
There is only one way to benefit from this cycle, to build a position in a basket of health care companies. At virtually every level the healthcare industry will benefit from social programs, the drug makers, the research companies and the hospitals themselves.
Timing this market can be extremely difficult but the variety of government programs will likely boost the coffers of many health care related firms. The industry has had a rough few months, selling off along with financials but we should start to see a rebound. Health care companies are reasonably cheap, Amgen for example trades at a nice 14 PE ratio and a PEG of .97.
Regardless of your political alignment, there is plenty of room to grow in the healthcare industry. The election year politics could turn a healthy return on your portfolio- you might just make up the tax hike difference.Presidential profits
Wednesday, April 9, 2008
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