Healthcare insurers are losing money. That’s what a commentator said today who was being interviewed about the vote to end Obamacare.
As we all know as students of the stock market, prices rise on the anticipation of future growth and earnings.
We also know from the past that earnings can be manipulated through creative accounting practices.
Reported false earnings eventually come to light; however, before the truth is known to everyone, the stock’s price starts to decline in anticipation of the truth. Insider information, you say — no, that’s illegal. Ha, Ha! Recall Enron and WorldCom from the past!?
The commentator that said healthcare insurers are losing money. Could that be more “Fake News” being told?
Some companies lose money and the stock price does go up, but it’s on anticipation of future growth and/or new technology.
An example of that is Tesla (TSLA), which loses money compared to Ford (F) and General Motors (GM), but TSLA's stock price far outperforms either.
Chart of Healthcare Insurance Providers
Viewing the chart above of some of the healthcare providers, we can see that they made their bottom — almost to the day — on Trump's election.
When he signed the so-called “Affordable Care Act” into law, all of those stocks began their steady ascent — and that shows no sign of stopping yet.
Are they losing money? Profits and losses reported can be manipulated by accountants; eventually the truth comes out.
What we know – without a doubt from looking at the above chart above, is that Obamacare has been a boom to the healthcare insurance providers.
As Master Trader technical investors and traders, we follow trends of charts in multiple time frames for the truth. Charts that don’t lie!
Whether you’re using an investment adviser or a service like the Master Trader Advisory Letter, you should have a foundation level of understanding of how the markets operate and of technical analysis.
If you are starting out in the markets and would like to learn that foundation of information and more, I will be offering a free course on this in the coming weeks.
If you’re interested in learning this important information and insights into the financial markets, feel free to email me at firstname.lastname@example.org.
All the best,
Managing Director and Pristine Founder
Chief Options Strategist