The Stock Market After the Supreme Court Ruling
Updated: Friday, August 2 2013, 10:14 PM EDT
Few things have proven to be as politically divisive as the Affordable Care Act but there is one place that may be judging health care reform, and the Supreme Court ruling, relatively free of politics - the stock market.
Gregg Lagerquist reports on how the markets are revealing winners and losers in health care reform.
You don't make changes to one-sixth of the economy quietly, but if you want the best "bellwether" of who wins and loses with health care reform, follow the money.
"The clearest beneficiaries will be the hospitals in my opinion," says Brian Clement, Snr. VP, RBC Wealth Management
Brian Clement is an investment pro who has watched stocks move before and after the Supreme Court's health care ruling. Many hospital stocks are up because they will soon have millions of new, in theory, paying customers.
Health insurance companies, like Aetna, have been mixed or down. But why? Won't they have millions of new customers too?
"But it's a little less clear how profitable they will be because there are rules and restrictive policies that may be a challenge for them," says Clement.
That includes the inability to refuse someone for a preexisting condition, good if that's you, possibly bad for those covering your risk. Medical device makers also have seen stock prices drop as they will face additional taxes.
For the most part, the stock market reaction has been relatively tame since the Supreme Court ruling, largely because businesses and investors have seen health care reform coming for a long time.