A Sector ETF to Watch in 2017

The impact of a Trump presidency on healthcare stocks remains to be seen. Candidate Trump rebuked Obamacare and if successful in that effort, there would likely be some effect on diversified healthcare ETFs due to their exposure to health insurance providers.

The overall pharmaceutical industry has also taken a greater interest in so-called orphan drugs due to their strong protection, which helps support reliable pricing power, especially as the industry faces questions over high pricing over primary care products.

“Furthermore, bearish traders will also use the crossover between the 50-day and 200-day moving averages, known as a death cross, to signal the beginning of a long-term downtrend. From a risk management perspective, bearish traders will likely be looking to establish a position near current levels because the combined support and long-term sell signal offer one of the most lucrative risk-to-reward ratios of the year,” according to Investopedia.

For more information on the healthcare sector, visit our healthcare category.