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The health care sector has only lagged this badly twice

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Aside from the financial crisis, health care hasn't seriously lagged the broader market as badly as it is now since Bill Clinton was president.

Health care has been slammed by political headwinds, largely the result of Democrat Hillary Clinton's assault on drug pricing during the presidential campaign. But both major party candidates could rock the sector from the White House, as Republican Donald Trump has also criticized pricing for Medicare drugs and has said he would dismantle the Affordable Care Act.

"It's at a valuation discount that exceeds the discount we saw in 1993, 1994 when then President Bill Clinton tried to reform the health care industry unsuccessfully. The effort was spearheaded by then first lady Hillary Clinton," said Julian Emanuel, UBS equity and derivatives strategist.

"Basically what we've seen is a year of position de-risking in a sector that was, given its earnings profile over two of the most choppy years of earnings growth … a very, very consensus trade coming into the end of 2015. Then all of a sudden the political invective started, from all sides," said Emanuel.