Obama's Policy Makes Health Stocks a Short By John Hughes and Scott Maragioglio About this article: The Obama administration outlined its budget plans this week, and one sector that was obviously in the cross hairs of the administration was health care. We're not sure why this idea is coming as such a surprise to traders now. The health care sector has been a target of the Democrats since the Clinton administration's failed health care reform initiative. The group is in a bad position right here. The sector has shown comparative relative strength vs. the broader market due to the nondiscretionary spending aspects of the group and the relatively steady earnings and revenue. The health care sector, especially biotechnology, has looked like a relative oasis as the financial crisis destroys the rest of the market. Now that the Obama administration has announced it plans on health care, the earnings power of the group has been quickly brought into question. This sets the sector up... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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