President Donald Trump takes credit for many things, but he can unmistakably be credited for the market’s sudden rise to record highs since his victory in the Electoral College. While the S&P 500 has gained 5.6% since Nov. 8, not all companies have benefited from the so-called “Trump bump,” particularly in sectors cowering from negative projections of his stated opinions and policies.
Health care, hanging in limbo with the potential repeal of Obamacare looming, is the only S&P 500 sector to decline in the past year. It’s down 2.35%, though its constituents still carry a relatively high P/E of 32.02, compared to 26.1 for the index. A closer look shows that the two health care industries to fall the most over the past year also had the highest valuations. Health Care Technology, down 20.3%, had a P/E of 118.6 last year; Biotechnology, docked 11.2%, had a P/E of 46. Continue Reading »