Last Friday Reuters posted an interesting take on the Supreme Court case King vs. Burwell titled “Healthcare Investors see no real threat from Supreme Court.” In recent weeks healthcare stocks have been rising with the anticipated ruling. The article states that, “a negative ruling for Obamacare could result in an immediate selloff of healthcare stocks, but it will be short lived.” Keep in mind that the ruling will only effect those that are receiving government assistance for their health premiums enrolled through Healthcare.gov.
This provides some security to investors knowing that a large amount of Americans will not have any disruption in coverage whether the outcome is ruled in favor or against the affordable care act. Moreover, Americans still need health insurance no matter what the Supreme Courts decision might be in King vs. Burwell, so if there is a negative ruling and a quick sell off, the stocks potential to rise shortly after is highly probable.
Court met today, but a decision isn’t set to be made until the end of the month. Anshul Agarwal, equity derivative strategist at Bay Crest Partners in New York said that, “while there is a lot of expectation for a big move in these stocks, there is little evidence of hedging the move to the downside.” With any stock there is upside and downside potential and healthcare stock is no different, but investors view this market as a steady investment for the foreseen future. Read the full article HERE