The importance of drug pricing and other health-care issues in the presidential campaign will keep a lid on health-care stocks, according to a Wall Street analyst.
"The U.S. presidential election has shifted into overdrive and health care is again one of the campaign trail's prominent and controversial issues," Kelly Bogdanov, vice president and portfolio analyst at RBC Wealth Management, wrote in a note to clients Feb. 16. "As the candidates kick around this political football, share prices and sentiment have soured. Investors should approach the near term with caution."
A Donald Trump presidency, which could get another major boost from the Nevada caucuses Tuesday, won't be that much friendlier to the industry either, according to RBC.