The S&P 500 has fallen three.five percent in the two days considering that President Obama’s re-election. Maybe this indicates investors are scared of the administration much more most likely they’re spooked by continuing fiscal headaches in Europe and that the split government re-elected Tuesday may well fall off a “fiscal cliff” of automatic investing cuts and tax hikes.
Either way, the stock market is not, usually speaking, content. But there are exceptions. Some sectors are popping champagne corks the president was re-elected. We’re not saying you ought to pile all your cash into any of them the re-election bump in value has already been factored into them, at least in portion. But it’s good to know that, amid all the Wall Street doom and gloom of the previous couple of days, there are some companies partying like the 2013 inaugural is already here.
Smith & Wesson Holding Corporation (SWHC) is up 12 percent given that election night even though Sturm, Ruger & Co. (RGR) is up 11 percent. Why? Nicely, one line of thinking is that gun nuts, uhhh Second Amendment fans, anticipate the president to try and tighten gun control measures, so they’re prepared to pull the trigger on purchases. An alternate theory is that all the debate talk about firearms got people thinking about firearms, major them to go out and acquire firearms. “Recent ‘political’ sales have improved the profile of firearm use,” mentioned a Benchmark analyst quoted by the Wall Street Journal. (See? The Initial and Second Amendments have much more in frequent than you believed.)
HCA Holdings Inc.(HCA) shares are up 4 percent and Wellness Management Associates Inc. (HMA) stock is up five percent since Tuesday. The president’s re-election means the preservation of the Patient Protection and Reasonably priced Care Act – “Obamacare,” if you favor – and along with it the aim of extending wellness care to 30 million Americans. Among publicly traded entities, hospitals are expected to be the chief beneficiary.
Medicaid-Focused Wellness Insurers
Centene Corp. (CNC) is up 6 percent considering that the election thanks to its focus on insuring Medicaid sufferers many of the the tens of millions of Americans added to insurance rolls beneath wellness care reform will be covered by way of Medicaid. Broad-based insurers, however, are facing tougher regulation, and Medicare-focused providers will see their federal reimbursements tightened.
Don’t Bet on These Guys
Not each and every stock got the Obama bump pundits predicted: Alternate energy provider First Solar (FSLR) has seen its shares fall 3 percent, the PowerShares Cleantech fund (PZD) is down three percent, and generics-focused pharmaceutical company Teva (TEVA) is down 1 percent. That just goes to display that when you combine the uncertainty of politics with the uncertainty of economic markets, there’s nothing even approaching a positive bet.