Earlier this morning I came across an interesting article titled “Exchanges Will Raise U.S Health-Care Costs” by David Goldhill on Bloomberg.com. In the article the author pointed out what he believed to be three flawed crucial assumptions used by the architects of the freshly launched healthcare exchanges that would most likely result in driving up the price of healthcare. Like it or not, his conclusion is probably correct. But instead of complaining about it, why not profit from it by investing in the healthcare sector.
In an Alert on September 10, we identified iShares DJ US Healthcare Providers (IHF) and iShares DJ US Pharmaceutical (IHE) as two top choices to trade typical seasonal strength in the Healthcare Providers and Pharmaceutical sectors. In addition to the previously held iShares Nasdaq Biotechnology (IBB), the Almanac Investor ETF Portfolio is well positioned to benefit from the launch of ObamaCare.
By Christopher Mistal