The move up in heath care and drug stocks also coincides with the first baby boomer retirements.
Just saying, correlation does not equal causation.
You could also pin the boom in health care and drug stocks to the soaring obesity epidemic.
I don't think it's so easy as to pin it on a single factor.
Also, FWIW, the drug and health care stocks nearly doubled off the 2001 lows to the 2007 highs, so they were basically market performing into the 2008 lows.
Furthermore, if the gains were all due to Obamacare, why didn't they drop from nearly 80 to 25 when it was nearly repealed in 2015? They only dropped around 20%.
Finally, looking at the move up from the 2008 lows, the sector has been basically market performing, similar to the SPX move up from the 666 2009 lows to the 4814 2021 highs.
It's our nature to try to come with fast conclusions when analyzing things. It's helped us survive for eons (Example - Roar = Tiger = Danger! Today, Roar=Noise; could be TV, radio, internet, PA, toy, movie, phone, Ventriloquist, or actual Tiger, amongst other things).
However, fast conclusions are more often than not an impediment to successfully navigating our modern, data-dependent age. |
