Stock Market Changes with Health Care Reform

Healthcare reform has been a hot topic for several years now, and the stock market, being the fickle beast that it is, has been somewhat slow to accept, digest, and decide upon how reform will correlate with market dynamics.

Its no surprise, the stock market has been in a bull, positive run, since the dog days of 2009. Ever since the market made a multi decade low in March 2009, it has been in a slow, medium, fast, and everywhere in between runup. Most investment professionals have thrown caution to the wind, and are fully invested. With a new administration in place, what will come of the bull market, and correspondingly, what will become of healthcare reform.


Ever since President Obama forced thru his Obamacare legislation a few years back, it has been much maligned from both sides of the aisle. People in the pro camp applaud affordable healthcare for all. Other neighboring countries, specifically Canada, has had some element of healthcare for all of its citizens for some time now. Countries across the pond, in Europe followed suit some time back. Why was the USA, typically a global leader, so far behind. That is a question that no one seems to answer.

The bear camp, has called Obamacare wasteful and ineffective. Rallying against massive premiums for some families, the bear camp has sought to repeal and pull back the healthcare reform initiatives. With a new administration in place, it truly remains to be seen what will happen.

How has this affected stocks?

The stock market as a whole has runup continuously off the lows, as we have previously mentioned. Certain sectors have done better than others. Namely, commercial and residential real estate stocks have captured a fair amount of momentum, as have infrastructure and technology stocks. Healthcare company stocks have increased, but it has not been as pronounced in most cases. If you are investing in healthcare stocks, you have had to selectively pick your spots, and be very careful about which names and issues you choose. As an example, pharmacy benefit managers like a CVS come to mind as positive names, also United Healthcare and Anthem health as beneficiaries of reform. Anything else- its really too early to tell.

Which leads us to healthcare itself

If you are in need of healthcare, and don’t qualify, or are hesitant to qualify for the certain traditional programs that are available, you do have some avenues to pursue.

You can pay cash- an obvious answer. You can liquidate existing stock market positions. And, you could take an outlier approach and consider vehicle title loans. If you have more than one vehicle, or even just one vehicle, taking out a loan such as this is a means to an end. It will provide you with a fast cash infusion, and you are free to use that cash any way you like. A title loan is a secured loan, and you can pay it back over time. It is often a cashless exercise, meaning- you can see money show up in your checking account, secured by your vehicle, at no additional cost to you. Take this newfound money in your pocket and spend as you like, come back and payoff the debt later.

As always, with the marketplace changing daily and the dynamics of the country playing out on the day to day- certainly investigate all paths and avenues.

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