Diamonds and Dogs

11/9/16

The healthcare sector (XLV) likes Trump! Healthcare, the worst performing sector and the only sector in the red for the year, is up over 2.5% today, rallying over 3% on the open. The drug companies have been under pressure for the last year due in part to Democrats coming after the sector. But now Congress will stay in Republican hands and a Trump  win means there's the potential for the repeal of the Affordable Care Act,  and at the very least a positive for health insurers and drug companies giving them greater flexibility in designing, pricing, and underwriting policies.

 Railroads can't go through a wall. Railroader, KC Southern (KSU) is down 13% on a Trump win and resulting Mexico trade concerns. KC Southern gets 47% of their revenue from Mexico and Latin America, The primary operating subsidiaries of the company consist of the following: The Kansas City Southern Railway Company, Kansas City Southern de México, S.A. de C.V., Meridian Speedway, LLC, and The Texas Mexican Railway Company. We'll see if the wall gets built.