Those who have invested in the stock of health insurers like Medicaid and Centene recently got bad news. A federal judge has decided to abolish the Obamacare law completely and that means the stocks of those companies are down. It will only get lower for those companies in the near future. Since the law has ended, hospitals could also suffer. It means fewer patients would be treated there. It can’t be good news for those who are studying to become doctors in the future. This is definitely another questionable move by the administration of President Donald Trump.
Yes, companies that are in the hospitalization industry should press the panic button as this is a clear indication that bad times are ahead.
Investors should pull out their shares in hospitals and health insurers and look for better options. Besides, there are a lot of other good options in the country. It is never a good feeling to know your investments are not doing good. If you have a choice of making it right, you must do it immediately unless you want everything you worked hard to go down the drain. While the future looks bleak for health insurers’ stocks, there may be a chance for another law to be made that will save their stocks. However, nobody knows when or if that will happen. Hence, it would be better to look for other options in terms of stocks.
The law is very unfair to those who are in the health care sector since they always abide by the law. When the law was made 8 years ago, the stock of health insurers soared. It was undoubtedly the best time for them. Of course, nothing lasts forever so they should have enjoyed it while it lasted. It was one of those things that were done correctly during the term of President Obama. Of course, this decision by the judge is not yet final as Democrats are still going to appeal it. Once they do, this is going to be headed to the Supreme Court where a final decision is expected to be made soon. One can only hope the decision will favor everyone involved.
Besides, nobody can ever be sure what the Supreme Court will decide.
Some analysts think this is one of those times when companies’ stocks go down but it will eventually go up. Even if the ruling is not final, it still adds a bit of uncertainty in the world of investing. Some people may even think twice about investing in any type of stocks once they get traumatized about what happened.
Of course, you can’t blame them if they do that since they are investing their hard-earned money. There are a lot of things to invest in including cars and properties. All these investments have their own advantages and disadvantages so you can’t be sure of earning big bucks when you invest in any of them. It would be better to get advice from financial advisors who have been around quite sometime.