As we write, the Obamacare repeal process is facing headwinds in the House and the even tougher hurdle of Senate approval. We’re surprised at how closely Canadian clients are tracking this legislative labyrinth. It’s not due to any stake in US insurers. Instead, it’s because equity markets are wrongly viewing the healthcare bill as a harbinger for Trump’s ability to push through other pro-business legislation.
Healthcare, as Trump claimed to be the first to discover, is “complicated.” The health bill’s troubles exposed a fundamental conflict within the GOP. Conservatives want government’s role even more dramatically scaled back, while more moderate Republicans don’t.