Democratic candidate Joe Biden’s capture of several key states including Texas has inspired confidence back into the markets as the stocks of healthcare giants; Anthem ANTM, +13.31%, Humana HUM, +12.18%, United Health GroupUNH, +8.31% and Cigna Corporation CI, +8.73% have risen amidst a hugely turbulent market due to the outbreak of COVID-19.
A victory for Biden over Sanders in the Democratic nominee race is expected to ensure that the policies of ‘free health care for all’ that Sanders has offered voters will be put to bed once and for all, regardless of whether or not Biden goes on to become the next president of the United States of America.
“Nothing will fundamentally change,” and “I don’t want to demonize the rich” stated Joe Biden – this is what the stock market enjoys. American healthcare corporations generate trillions of dollars per year in revenue and are heavily against a potential Sanders presidency campaign.
This suggests that should Bernie Sanders beat Biden to the nomination, expect these same stocks that have risen due to Biden’s recent success, to go the opposite way and if Sanders beats Biden and then beats Trump, expect healthcare stocks to crash.
President Sanders would almost certainly contribute to a damaging effect on the profits of health care companies should he look to reframe the healthcare system from what it is today – something he has pledged to do. For a relevant comparison, think how the stock prices of online casinos; PlayFrank and William Hill would drastically rise should the USA open up the casino and gambling market and make online gambling in the USA legal again – the market would generate potentially trillions overnight. If Sanders is on the verge of the presidency, it’s bad news for the healthcare giants.
Congratulations to all those Joe Biden supporters! pic.twitter.com/EfkOpyOZJr
— Matt Stoller (@matthewstoller) March 9, 2020