One of the residual benefits of the cantankerous debate regarding the debt ceiling in Washington is the health care sector. The debate on raising the debt limit has demonstrated the remarkable gains in political clout of the tea party and fiscally conservative elements of the GOP. With that clout, expect current health care legislation to be repealed or changed entirely at some point in the near future.
Already, the health care sector has been humming along in 2011. Stocks in the group have been rallying as politicians’ attention shifted to other priorities. Free to operate without the fear of onerous regulations, investors have been bidding up health care stocks like UnitedHealth (NYSE:UNH) and WellPoint (NYSE:WLP).
The biggest gains are yet to come, especially if the current health care law is repealed. I expect outsized gains in the sector, and I am particularly enamored with health care penny stocks. The SEC defines a penny stock as being less than $5 per share. The penny stocks mentioned here are all real companies with promising futures despite low prices.