Increased Volatility, lower m&A volume
"The third quarter of brought significant volatility across the health care sector. Health care indexes declined precipitously during the summer months as investors digested the impact of a failed health care reform bill. In contrast, the S&P 500 continued to show improvements supported by stable corporate earnings and healthy consumer sentiment. As we exit the quarter, specialized services have begun to show signs of recovery, while medical devices, technology, and outsourced services have all enjoyed a substantial rebound. This has been driven in part, by the initial indications that major companies in the health care sector could be significant beneficiaries of the proposed tax changes. Most forecasts call for a more stable fourth quarter as the market more fully-digests these policies."