U.S. equities continue to sit at all-time highs, with financials, transportation, and energy leading the way, while biotech lags. The under-performance isn’t just from biotech/drug developers though, as XLV (SPDR’s Healthcare Select Sector Fund) suffers from a general malaise as well. We view this as largely a result of shifting healthcare policy in the next two years – ACA reform, drug pricing, etc. – and a poor understanding of exactly how these changes will play out. That should begin to clear up in 2017 as the Trump white house puts forth its healthcare agenda.