they will be getting a large number of people buying private insurance with federal subsidies
Why would this make insurance (health, I presume) stocks rise?
Insurance stocks will rise because they are the short-term beneficiaries of Obamacare. Temporarily acting as the insurance “agents” of the gubmint, they will see a rise in the number of “customers”, thereby increasing their revenue in the short run. But the gains will be short-lived, as the gubmint will eventually eliminate them from the landscape... think of it as the “perversity of the street”, with money managers only thinking of the next reporting quarter rather than the long term growth and strength of the market.
You need to do your homework on this bill. The Inssurance companies stand to gain 30 million new paying customers. Their are no limits on prices in the bill and they still can’t compete across state lines. If you want to make some quick money, start buying health insurance stock. How many commercials “Paid by insurance companies” opposing this bill have you seen in your viewing area. I will bet you the answer is zero. Thier may be some against commercials, but the insurance comopanies aren’t buying them.
I think GS and other WS flunky’s have been dry h**ping health care stocks- pump and dump.
Just my 2 cents worth...