The Stock Market Loves Obamacare

Bloomberg Businessweek: “A new online broker, Motif Investing, is offering Obamacare’s friends and foes alike a chance to put their money where their mouth is. Co-founded by a former Microsoft executive, Hardeep Walia, and backed by Goldman Sachs and other investors, Motif allows customers to bet on narrowly tailored concepts.”

“Two of the hottest motifs right now are Obamacare and repeal Obamacare.”

The Markets Go Mad for Obamacare

“What’s most striking isn’t the performance of the two funds, but where investors are choosing to place their money … One is clearly more popular: … Motif investors have bet 45 times more money on Obamacare’s success than on its failure.”

“Since the U.S. Supreme Court upheld the law’s constitutionality in June 2012, investment in the health-care sector has soared.”

Bloomberg analyst Eric Balchunas: “Clearly Obamacare has provided a major catalyst to the investment case for this red-hot sector.”

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  • DownriverDem

    Contrary to hateful ignorant repubs, ObamaCare was a gift to the insurance companies.

    • Mark_in_VA

      Hateful ignorant repubs are a gift to no one, insurance companies included.

    • JamesInCA

      Insurance, pharmaceuticals, healthcare providers….

  • Lorehead

    A rise in stock prices for the health-care sector relative to the market as a whole could be good news, if it means more people will be getting health care. It could be bad news, if it means health-care prices will keep growing. It could mean that investors don’t think repeal will happen and place their bets accordingly. It could be driven by factors other than politics.

    I don’t see how looking at it through the prism of Obamacare/Repeal Obamacare helps make wise investment decisions. It seems more like a way to try to get people emotionally involved enough to gamble based on wishful thinking.

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