If your paying attention to the markets its very possible you have heard about the healthcare bill that is making its way through congress. This could be the start of the process of Trump care which would be replacing Obama care (the Affordable health care act). Now there are plenty of opinions on both sides of the argument but we are here to focus on your investments so today we will look at where you can invest should you think the bill will pass or not.
First, and the easiest place to look is the healthcare ETF's. Now the most popular one is the Select Sector SPDR Healthcare (NYSE: XLV). This one has been doing quite well up until recently. Just through the month of February it had almost a 10% rally with almost every day being positive. Lately it has given back around three percent but this seems ok given how fast the rally was. Its likely that short term investors were content to take their quick profit and avoid all this congress mess. Comprised of healthcare and insurance stocks this ETF is highly likely to respond to any vote on the bill.
If you want to drill down a little further then the next stop would be the insurers. Stocks like Humana (NYSE: HUM), and Aetna (NYSE: AET) will be directly impacted by the results of the vote. Their whole system could potentially change overnight so these stocks are most certainly going to see action on the vote results.
Finally you could just look at the S&P 500 (NYSE: SPY). The results of the vote will either be seen as a strong win for a strong President that shows he can negotiate in Washington, or it could be a blow to the "teflon Don" appearance that many are seeing. If the President cannot get enough votes then analysts are saying that this will take some of the steam out of the Trump rally.
Once this all passes don't get too comfortable. There is a huge tax reform bill headed to congress next and the markets will surely be paying attention.