In my original writeup on HQL on October 27 I noted that I was interested in this closed-end fund after reading about it on BioHealth Investor, but something was bothering my intuition and I was deferring purchase of shares.
My subconscious mind must have realized that Democrats would gain control of congress in the November 7 elections and that would be negative for health care stocks.
The health care sector did react negatively at first, but the market now seems to be getting used to the idea that Democrats will be running things, and life will go on.
After all, many of the Democrat congressional leaders are wealthy and they have a vested interest in the status quo. For example, Nancy Pelosi has a huge stock portfolio. (Clicking the link will open a .pdf file which is her financial disclosure statement.) Pelosi’s stocks include a large position in Johnson & Johnson. It’s not likely that she is totally anti-business, or that she has an agenda of sabotaging the health care industry.
I believe this little correction in health care stocks has created a buying opportunity and I plan to buy HQL as soon as I feel confident the bottom is in. The shares yield 8.3% and they were selling at a discount of 6.82% to the net asset value as of November 16.