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How Ironic That Health-Care Stocks Look So Healthy

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Happy hangover. After weeks of hand-wringing and hypothesizing about the unthinkable prospect of U.S. default, Congress passed an 11th hour deal and we can all get back to reality. Snooze.

The Gallup Organization conducts a monthly poll asking Americans, "What's the most important problem facing the country today?" Congress tops the list.

Note how concerns about unemployment and the economy have fallen. This is good news, because it's what actually matters. Congress has become a sideshow unto itself. As Dan Clifton, a political strategist at Strategas Research Partners, writes in his morning note:

So, as we rub our eyes and get back to work, the conversation shifts towards more substantive issues: gross domestic product rising by 2.5 percent; unemployment at 7.3 percent; earnings growth of 6.8 percent (2013 estimate). The numbers are not stellar, but they are moving the right direction. And so is the S&P 500 Index:

My inclination, therefore, is to reaffirm our bullish bias. And this is fine. But we can do better. Among the ten S&P industry sub-indexes that make up the S&P 500, one clear leader stands out: health care. How ironic that for all the venom and filibustering over shutting the government in an attempt to de-fund Obamacare, health care has managed to lead the pack.

Yes, we reaffirm our bullish market view, and we also believe staying with proven leadership is right for our Washington hangover.

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