Is Healthcare Pricing in the GOP Keeping the U.S. Senate?

Sure, every sector is higher today but healthcare and biotech are dramatically outperforming the broader market.

Find out the rest of our election predictions, and which stocks will benefit. 

With Hillary Clinton leading in polls ahead of Election Day, for weeks investors have widely expected biotech stocks to trend lower, but the iShares Nasdaq Biotech ETF (IBB) rallied nearly 4 percent Monday.

An NBC News/Survey Monkey poll released Monday morning found Clinton 6 points ahead of Donald Trump.

Since the Lows from Last Week:

• Biotechnologies ETF is up 6.1%
• S&P Healthcare ETF is up 3.6%
• The S&P 500 is only 2.2%

The recent rise in healthcare is indicative of the senate staying red.

Should Trump win on Tuesday, the biotech sector would rally, according to Larry McDonald, head of global macro strategy of ACG Analytics and editor of the Bear Traps Report investment newsletter.  However, if Clinton were to win, and Democrats gain control of the Senate, “that’s a big problem for the IBB,”  McDonald told CNBC on Monday.

“If the GOP keeps the U.S. Senate (our call), IBB is a winner in our view. As Trump election odds surge, we believe this will help as well,” McDonald wrote, adding that if Clinton wins, and if Republicans maintain control of the Senate, biotech could experience a “profitable” relief rally.

One of he smartest asset managers we’ve ever met.  When Tepper speaks, take notice:

For our Election recap, click here

*TEPPER: THINKS HILLARY CLINTON IS TO THE RIGHT OF OBAMA
*TEPPER: WANTS HOUSE AND SENATE TO HAVE REPUBLICAN MAJORITY
*TEPPER: CLINTON WILL PROBABLY BE TO THE RIGHT OF THAT PLATFORM
*TEPPER: DOESN’T LIKE THE DEMOCRATIC PLATFORM ON ECONOMICS
*TEPPER: LONGER MARKET THAN TWO OR THREE WEEKS AGO
*TEPPER: IF TRUMP WINS, MARKET GOES TO 2040
*TEPPER: TRUMP IS ‘HIGH VOLATILITY’ CANDIDATE ON ECONOMIC POLICY
*TEPPER SAYS HE MOVED TO FLORIDA FOR FAMILY, WEATHER
*TEPPER: TRUMP DIDN’T GIVE TO ONE MAJOR FOOD BANK AFTER SANDY
*TEPPER: TRUMP GAVE “NOT ONE DIME” TO NJ AFTER HURRICANE SANDY
*TEPPER: LATIN VOTE VS. WHITE WORKING CLASS HARD TO MEASURE
*TEPPER: HARD ELECTION FOR FUNDS TO DO POLLING AND MODELING ON

David Alan Tepper (born September 11, 1957) is an American hedge fund manager and the founder of Appaloosa Management. His investment specialty is distressed companies. In recent years he has become known as a philanthropist, and in 2013 he donated his largest gift of $67 million to Carnegie Mellon University, whose Tepper School of Business is named after him. He earned his BA in Economics from the University of Pittsburgh in 1978 and his MS in Industrial Administration from the Tepper School of Business (then known as GSIA) of Carnegie Mellon University in 1982. For the 2012 tax year, Institutional Investor’s Alpha ranked Tepper No. 1 for earning a $2.2 billion paycheck.[3] He topped the list again in 2013, earning $3.5 billion.