By Walter Kurtz, Sober Look
Some of the most unpopular policies often create tremendous opportunities. Take the Affordable Care Act for example. While the public is complaining bitterly about this legislation, some investors will be (or already have been) profiting handsomely. Venture capital firms for example are expected to rake it in by funding companies that provide healthcare-related software services (see story). At the same time, the equity markets have been bidding up the whole sector with the view that Obamacare will make healthcare firms more profitable. More subscribers and more people receiving care means higher revenues and outperformance for healthcare shares.
Blue: healthcare index ETF, red: S&P500 ETF
By the way, is it time to take profits?