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Here’s the Effect of Obamacare on Your Investments in Just 1 Sentence

Enormous opportunities have opened up for the long term


Jon Markman, Trader’s Advantage

“The bottom line is that, just as Europe is on a path to mutualize its sovereign debts, the United States is on a path to fully mutualize health care in a single-payer system in which the government supersedes certain roles currently played by insurers. This should be good for hospitals and drug makers because they will have greater assurance of payment for their services and products. But it might be bad for insurance companies, which could find their margins squeezed by the government big-footing their industry.

“The bottom line is that insurance companies like UnitedHealth Group (NYSE:UNH) and WellPoint (NYSE:WLP) might suffer a structural impediment for awhile, or at least until their lobbyists find a way to squirm out of this tight spot. And drug makers such as Merck (NYSE:MRK) and Abbott Laboratories (NYSE:ABT), and hospital groups like HCA Holdings (NYSE:HCA), should find that they have a larger pool of paying customers.”

A Ruling That’s Good for Health Care Stocks
A Ruling That’s Good for Health Care Stocks

Read Jon’s in-depth take on the SCOTUS ruling and opportunities in health care.

Charles Sizemore, The Sizemore Investment Letter

“Outside of the health care sector, where there will be some clear winners and losers, the Supreme Court’s decision won’t have much of a direct effect on the market. Sure, you can make the somewhat ideological case that big government programs stunt growth over time — which, all else equal, should reduce corporate profits and thus stock returns. But over the next several months and years, the outcome of the European sovereign debt crisis and the possibility of a sharp Chinese slowdown will have far greater impacts. Obamacare might be grabbing the headlines, but investors should be paying far more attention to what’s happening in this week’s euro summit.”

Read more about Charles’ take on the eurozone.

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