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The Healthcare Sector. The affects of legislation and elections on stock performance. Healthcare bill passes House June 14 ‘09 Nov. 7 ‘09. Healthcare bill passes Senate July 15 ‘09 Dec. 24 ‘09. Healthcare reform proposed Feb 24 ‘09. Brown elected Senator Jan. 19 ‘10.
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The Healthcare Sector The affects of legislation and elections on stock performance
Healthcare bill passes House June 14 ‘09 Nov. 7 ‘09 Healthcare bill passes Senate July 15 ‘09 Dec. 24 ‘09 Healthcare reform proposed Feb 24 ‘09 Brown elected Senator Jan. 19 ‘10 Obama takes office Jan. 18 ’09 Sen. Ted Kennedy dies August 25 ‘09 Timeline
Jan 19 ‘10 $33.00 XLV – Healthcare Spider includes all subsectors
Jan 19 ‘10 $33.00 Aug 25 ‘09 $28.03 Nov 16 ‘09 $30.08 XLV – Healthcare Spider includes all subsectors
Health Care Reform announced 2/25/09 Mar 2 ‘09 $21.99 XLV – Healthcare Spider includes all subsectors
Conclusions • Stock values respond to legislative news • Stock values respond to election news • The degree of the response depends on the potential impact • Tracking political and legislative chatter is appropriate • REMAINING QUESTIONS: • Are these reactions temporal or sustained? • Does media characterization of these actions directly impact stocks?