The Huffington Post is all atwitter because Joe Scarborough stated on Press the Meat this morning that health care stocks hit a 52 YEAR HIGH on Friday.
http://www.huffingtonpost.com/...
He is of course....wrong.
Because, you know, facts occasionally matter...healthcare stocks did not hit a 52 year high on Friday. They hit a 52 WEEK high. United Health, for instance, traded around $80 per share in 2006. It trades for $31 per share now. Aetna traded around $60 per share just 2 years ago. It trades around $30 now. It will be the same story in any healthcare stock.
Another point on stock trading. The stock market hates uncertainty. When the future of a stock is murky, people do not buy them. Healthcare has been in flux the past year, the stocks have suffered. People are buying now not because the future is so golden for the healthcare companies. They are buying because the uncertainty has been removed. Whether their stock prices return to their past golden days remains to be seen. It's likely that some of the provisions in this healthcare bill will put a crimp in profits and the markets will act accordingly once the legislation is understood.
This has been a public service announcement.