Today on CNBC, Kate Kelly presented a chart of the healthcare index (see video below), and explained how some analysts think the stocks have moved in accordance with politics. She notes that they tanked soon after the healthcare vote passed, and have rallied of late as it’s become clear that the GOP would retake Congress.
Here’s her chart:
There’s just one problem… Check out this comparison of the healthcare ETF alongside the rest of the S&P. It’s almost exactly the same, though the selloff in healthcare stocks did begin a bit earlier than the rest of the market. But really, there’s just not much in here to suggest that healthcare stocks have moved much differently than the overall market, and the fact that the stocks fell hard right after Scott Brown shows how tenuous the connection is between their movement and the odds that healthcare would pass.
And here’s Kelly’s full report:
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