By Dr. Carla Pasternak
Obamacare has been a boon to the healthcare sector. In the three years since the first Supreme Court ruling upheld the Patient Protection and Affordable Care Act, the sector has posted returns of more than 100%, far outpacing any other sector and nearly twice the S&P 500's 58%. The momentum is continuing as the sector leads all other sectors this past year with stunning 20%-plus returns, four times that of the S&P 500. The latest Supreme Court ruling on June 25 in favor of Obamacare bodes well for the sector's continued outperformance.
Mergers and acquisitions (M&A) have been a major driver. Share prices of insurers have risen sharply on a raft of merger news as providers seek to increase their subsidized patient numbers. Within the last few weeks alone, Aetna (NYSE: AET) said it would buy smaller rival Humana (NYSE: HUM, up 30% year-to-date), Swiss property and casualty giant ... Log in or subscribe to continue reading.