congress (3)

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The Obamacare Post-Trump Dilemma

If you're like me, we're all wondering what is going to occur with ACA (Obamacare) once Donald Trump takes office and the charts from Healthcare (XLV) and Biotech (XBI) certainly reflect the concern.  With the proposed 21st Century Cures Act, due for Senate passage this week, be the $5Billion dollar "game changer"  the sector is waiting for...........or will we be waiting until Congress replaces the unpopular components of Obamacare to see an impact in stock price?

Repealing or replacing Obamacare is fraught with at least six major issues, but perhaps the most significant one is a lack of decisiveness within the Republican party itself. What would Obamacare be replaced with, and how would that change be implemented?

Interestingly, there are at least seven Republican plans that have been tabled to replace Obamacare. Within that group, two of the more prominent ones come from Georgia Rep. Tom Price and House Speaker Paul Ryan.

Tom Price, who is Trump’s pick as the incoming secretary for

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Christmas Came Early For These Sub Sectors

lameduck_matt_605.jpg?width=300Who doesn't love the lame duck session?  It's that special time of year when Santa comes early to Wall Street and you too, can benefit.  As one example, outgoing Congressmen and woman who lost during mid terms, tend to throw in the towel (they won't be around next session anyway) and all types of goodies get through the Congressional pipeline which were stalled during the normal session.  This years winners if you're an investor are:

  • Banks and insurers.  Congress repealed a portion of Dodd-Frank so that derivatives will now be covered once again by FDIC Insurance, thus lowering the risk to banks and insurers like AIG.*
  • Health insurance companies get to keep their special tax breaks.
  • Tourist destinations like Las Vegas get their travel promotion subsidies.*
  • In a victory for food companies, the legislation even makes federally subsidized school lunches less healthy by allowing companies that provide them to include fewer whole grains. This boosts their profits because junk food is less

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1290832?profile=RESIZE_320x320A view of the the NFIB survey and wage growth gives a hint of what may lie ahead in the wage sector.  Consumer spending dropped $7 in June which surprised many. 

(CLICK ON IMAGES TO ENLARGE)

While Americans' spending in June was generally on par or lower than their average May spending, this month's $7 drop is one of the largest recorded by Gallup during this time of year since 2008, when June spending fell by $10. The June 2008 spending average of $104 is still the highest average for that month in Gallup's six-year trend.

Can it be the new jobs being created (majority at the low end) is weighing on consumers pocketbook?  #shocker!  But what about the spending of the wealthy lifting all boats?  You know; that good old trickle down effect?

According to Econoday, the drop in daily spending among all Americans can largely be attributed to upper-income Americans spending less in June. Could the wealthy be running low on things to buy?  Yes sarcasm on my part but a drop is not what any

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