On Dec 21, 2009, at 2:34 PM, Left-Wing Wacko wrote:
> http://www.fivethirtyeight.com/2009/12/insurance-stocks-rise-on-news-of-health.html
>> From the conclusion:
>
> "The bottom line is that, by the stock market's estimation, the
> private
> health care industry appears as though it will benefit if the Senate
> enacts
> its plan. But the benefit -- about $16 billion in discounted
> cashflows -- is
> small as compared to the total magnitude of the program, and likely
> reflects
> an increase in the size of their customer base rather than any
> anticipation
> of higher profit margins. "
Shows a touching faith in the power of markets to see the future.
And it's a one-day event study. Rising four times as much as the S&P is no small feat.
Doug