Why aren't most health insurance stocks outperforming the S&P 500

[skipos]

over the last year or so?

If you want to look at it since Obama took office...
Since Jan 20, 2009 through today:
S&P +22%
AET -04%
HNT +09%
HUM +11%
UNH +03%
WLP +25%

But going back even farther...
Since Jan 04, 2008:
S&P -29%
AET -54%
HNT -68%
HUM -51%
UNH -55%
WLP -46%

[FormerDittoHead]

1. Insurance companies have many things in common with BANKS.

They are basically money management companies. Who knows how much they had invested in subprime derivatives.

[skipos]

2. Sure but I keep hearing that HCR is going to be a massive gift to the insurance companies

shouldn't their stocks be doing better than this?

[Statistical]

3. Uncertainty.

The markets hate uncertainty. Nothing tanks a stock more than uncertainty.

Take two companies:
First company misses its earnings but reports strong growth estimates for next year, clear profit outlook, and expanding margins.
Second company hits earnings but reports lack of "visibility" on future earnings.

The second company usually declines more. Investors hate uncertainty in long term trends.

Health care stocks are being pushed down because while HCR may have some benefits some things are hard to estimate on the bottom line. Investors would rather go to companies where outlook isn't tied to something they can't control.