ETF Expert

When Republicans cemented gubernatorial victories in both Virginia and New Jersey, I wondered if those results might be a boon for health care stocks. Later, when I discovered that Senate Leader Harry Reid expressed doubt about getting health care legislation passed in 2009, I wondered whether that too might be a tailwind for health care ETFs.

Granted, the markets were already set to surge on the notion that Fed would keep its ”extended period” statement on short-term interest rates. And the U.S. dollar was already weakening as the trading day began.

Nevertheless, health care stocks have been held back all year by the threat of quasi-universal health care coverage. Health care providers have been the hardest hit, while big pharma hasn’t had much to cheer about either.

On the fundamentals, one might expect better prospects for health care ETFs. That said, fundamental value rarely matters much when there’s exceptional uncertainty about what will or won’t pass. (And at least for one day, some investors wonder if anything of any substance will pass at all!)

Halfway through the 11/4/09 trading session, healthcare ETFs are outperforming most sectors and sub-segments:

If you’d like to learn more about ETF investing… then tune into “In the Money With Gary Gordon.” You can listen to the show “LIVE”, via podcast or on your iPod.

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