Biden, Trump, DeSantis: Cramer Says Concerns Over Next President Mean We May Be In For 'Second Leg' Of 'Vicious Rotation' Out Of Healthcare - State Street Health Care Select Sector SPDR ETF (ARCA:XLV)

The Health Care Select Sector SPDR Fund (NYSE:XLV) ended 2022 with a modest loss of 2.08%, a relative outperformance vis-a-vis the broader S&P 500 Index, which shed close to 20%.

What Happened: CNBC “Mad Money” host Jim Cramer on Tuesday took to Twitter to suggest there could be a second leg of a “vicious rotation” out of the healthcare sector. He noted that the group has had the “run of the joint” so far under the current administration.

See Also: Best Healthcare Stocks

Cramer premised his muted outlook for the healthcare sector on the uncertainty concerning who will assume office as the next president following the 2024 elections. “Concern about who might be the next presidential candidate may play a role," he said.

Why It's Important: The Joe Biden administration has gone ahead with policies and measures to lower healthcare costs for families and ensure affordable quality healthcare is available for all Americans. The Inflation Reduction Act of 2022 passed by the government in August aims at lowering drug prices in Medicare and applying a yearly cap on out-of-pocket prescription drug costs in Medicare, among other things.

The Republicans, who have taken control of the House after the midterms, are seeking to cut down on Social Security and Medicare costs. A group of conservative GOP lawmakers, who helped elect Rep. Kevin McCarthy (R-Calif) as Speaker over the weekend is reportedly clamoring for an across-the-board spending cut to rein in national debt.

Former President Donald Trump has already thrown his hat in the ring, having officially confirmed his intention to run for office. Florida Governor Ron DeSantis’ name is also thrown around as a potential presidential candidate. Despite age going against him, Biden has left open the possibility of his rerun.

XLVState Street Health Care Select Sector SPDR ETF

$149.900.07%

Overview

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.