Pharmaceutical stocks are outpacing the broader market today. This is despite the fact that the House of Representatives health care bill is tougher on pharmaceutical companies than was originally expected.
The Senate bill will likely be a lot kinder to pharmaceutical companies and a compromise will probably look a lot more like the Senate bill. The government is embarking on a trillion dollar spending program. The pharmaceutical sector, which is the largest lobbyist, will get their pound of flesh from the taxpayers and the stock market knows it. While politicians might not understand much about macroeconomics, they do understand who butters their bread.