Health stocks may rise if GOP wins in Massachusetts

[andym]

http://www.reuters.com/article/idUSN1519656120100115
By Lewis Krauskopf

Healthcare stocks could rise next week if Republicans pull off a shock victory in Tuesday's Massachusetts Senate election that endangers U.S. healthcare reform, analysts and investors said on Friday. A victory by State Senator Scott Brown may bode well for the shares of healthcare companies, including health insurers, which have been under siege by an overwhelmingly Democratic U.S. government.

.....

"If you even just put the concept of healthcare reform into question, everything we've climbed the wall and worried about for this sector can get thrown out the window," said David Heupel, a portfolio manager with Thrivent Investment Management.

Heupel said medical technology companies, which face a tax under reform legislation, could receive the biggest boost. Health insurer stocks, which have already had a strong run in recent weeks, could rise about 5 percent too, Heupel said.

Health insurers such as UnitedHealth Group Inc (UNH.N) and WellPoint Inc (WLP.N) face among the most substantial changes to their business if health reform passes. Despite the recent rally in the stocks, Tim Nelson, a healthcare analyst with First American Funds, said health insurers stand to be the biggest gainers in a Republican victory.
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Interesting article. From the perspective of investment advice-- which is essentially only motivated by greed. Raises some question of just how much insurers love the current reform bills, and seems to make the point that financial analysts think they'll benefit more without the bill.

[timeforpeace]

1. Precisely backwards as the HCR is a megaboon for drug companies and insurance companies.

[andym]

3. The advice is testable

If Brown wins in Massachusetts, and HCR is defeated, lets see how the HC stocks perform.

One thing to note, these guys are not posting articles to affect the result of the election (they can't), they are trying to increase their own business by showing that they make the correct calls about the market.

[treestar]

2. Of course they would benefit more without the bill

No business wants more regulation.

[ddeclue]

4. WHY? They'll lose the 30 million forced at gunpoint customers to sell junk insurance to.

and all those gov't subsidies to allow them to keep screwing us over without us noticing as much since it comes indirectly.

I would expect a giant sell off personally.

[andym]

5. Well if you're correct, you could make a fortune "shorting" the insurance stocks

because it appears your advice is contrary to the "experts". When correct, contrarians can make far more than ordinary investors.

[andym]

6. looks like predictions may be right-- see link

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=433x134800

probably not too late to invest :) (sarcasm)