Trading the Spending Supercycle. A $2.3 Trillion Dollar Opportunity.
Follow the Money
Among the myriad longstanding issues that have plagued the American legislative process, from Medicare to immigration, infrastructure has been among the most universally anticipated. It’s an issue that transcends party lines and has the most immediate benefit to the welfare of the country, its people and its businesses.
After decades of failing grades on the American Society of Civil Engineers’ quadrennial infrastructure report card, it finally seems as though a comprehensive infrastructure revitalization is on the horizon with the Biden administration’s recently announced $2.3 trillion infrastructure proposal.
While the final form of the bill, and even its passage through both houses of Congress, is not set in stone, it is one of the largest U.S. spending proposal in generations. And while the package is currently broadly opposed by Republican members of Congress, some form infrastructure
CURE provides a direct play while LABU can be used as an indirect play on healthcare.
“The White House on March 31 unveiled an approximately $2 trillion jobs and infrastructure plan that includes expanding access to long-term care services and other healthcare-related measures,” a Becker’s Hospital Review noted. “The proposal, called the American Jobs Plan, targets aging highways and bridges, as well as climate change, the nation’s digital infrastructure and home care.”
A couple of items the Becker’s Hospital Review noted could be a pair of drivers for a potential healthcare trade:
President Joe Biden’s proposal provides $18 billion for upgrading veterans hospitals and clinics.
What Happened
Healthcare is a sector with both defensive and growth traits, but many traditional benchmarks often lack exposure to the sector s more exciting avenues. Active traders can add some excitement to the healthcare mix with the
Direxion Daily Healthcare Bull 3X Shares (NYSE:CURE).
CURE, which is one of the oldest and largest leveraged healthcare exchange traded funds, looks to deliver triple the daily performance of the Health Care Select Sector Index.
Why It s Important
CURE, which is docile relative to some other geared ETFs, enters 2021 on a strong note, having jumped 7.40% over the past month. Additionally, there are ebbing though not dead political headwinds for CURE to contend with this year, but with electoral politics mostly in the rear view mirror for the rest of 2021, the healthcare sector could be a winner.