The MAHA Trade

RFK Jr Offered Job as Secretary of Health and Human Services. Policies Dictate Price. What's The Trade? $2 Trillion Is Yuge.

“Change, like healing, takes time.” ― Veronica Roth

Policies Dictate Price

Market-moving news like this means it is time to review a bunch of trades as continuation shorts or protect if long or do-not-touch long while this transition takes shape!

From President-elect Trump:

I am thrilled to announce Robert F. Kennedy Jr. as The United States Secretary of Health and Human Services (HHS). For too long, Americans have been crushed by the industrial food complex and drug companies who have engaged in deception, misinformation, and disinformation when it comes to Public Health. The Safety and Health of all Americans is the most important role of any Administration, and HHS will play a big role in helping ensure that everybody will be protected from harmful chemicals, pollutants, pesticides, pharmaceutical products, and food additives that have contributed to the overwhelming Health Crisis in this Country. Mr. Kennedy will restore these Agencies to the traditions of Gold Standard Scientific Research, and beacons of Transparency, to end the Chronic Disease epidemic, and to Make America Great and Healthy Again!

Robert F Kennedy Jr's response:

Thank you @realDonaldTrump for your leadership and courage. I'm committed to advancing your vision to Make America Healthy Again.
We have a generational opportunity to bring together the greatest minds in science, medicine, industry, and government to put an end to the chronic disease epidemic.

I look forward to working with the more than 80,000 employees at HHS to free the agencies from the smothering cloud of corporate capture so they can pursue their mission to make Americans once again the healthiest people on Earth.

Together we will clean up corruption, stop the revolving door between industry and government, and return our health agencies to their rich tradition of gold-standard, evidence-based science. I will provide Americans with transparency and access to all the data so they can make informed choices for themselves and their families.
My commitment to the American people is to be an honest public servant. Let’s go!

THIS is fabulous in my opinion, BUT not priced into the market.

How could it be? It’s yuge! Case in point, the subordinate operating agencies under the Public Health Service are many. Which means the policies that will change will be many and the trades around the potential policy changes will be many.

National Institutes of Health (NIH)
Centers for Disease Control and Prevention (CDC)
Indian Health Service (IHS)
Food and Drug Administration (FDA)
Agency for Toxic Substances and Disease Registry (ATSDR)
Health Resources and Services Administration (HRSA)
Agency for Healthcare Research and Quality (AHRQ)
Substance Abuse and Mental Health Services Administration (SAMHSA)
Administration for Strategic Preparedness and Response (ASPR)
Advanced Research Projects Agency for Health (ARPA-H)
Administration for Children and Families (ACF)
Administration for Community Living (ACL)
Centers for Medicare & Medicaid Services (CMS)

Of Note:

USDA falls under Secretary of Agriculture, so not sure what reach Kennedy will have here. EPA is at risk of being downsized, so perhaps this is why Trump didn't appoint him here, but EPA is the agency that enforces the laws that DC creates. Also, Senate must approve Kennedy, and that won’t be a cake walk.

Anyway, it looks like we have a bunch of trades to update and consider as continuation shorts or protect if long or do-not-touch long while this transition takes shape!

What’s The Trade?!

Here are some I've already discussed and recommended short to CLUB/EDGE clients that fall within XLP, XLV, XBI, IBB, IYH sectors: