Sorry to be a Downer: "Stocks Rise for Health-Care Sector due to Passage of Reform Bill"

[denimgirly]

As predicted, the day after health insurance reform passed the stock market's positive reception on belief that it would be heavy profit gains for insurers would spike stock prices for the sector and sure enough it did: http://www.democraticunderground.com/discuss/duboard.php?az=post&forum=433

ON THE BRIGHTER SIDE, the bills passage is just the beginning and HOPEFULLY someone will have the guts to return to add the needed fixes (REAL COST CONTROL please, to offset the poltiically-toxic "mandate" meme) at least in 2 years and not the expected 10-20.

It's a start so today Wall Street, Health Insurers, Pharma, and the People are happy and partying together ... at least for today! Enjoy everyone. We are all one happy family.

All those who jumped in on the bet against me regarding resulting Stock Prices the day after the bills passage now own me $5 each :hi: ...expect PM messages shortly. At least the money is going all to Anthony Weiner!

:grouphug::grouphug::grouphug::grouphug::grouphug:

[John Q. Citizen]

1. Good call.

[Teaser]

2. don't care

Attempting to determine what is the market mover on any given day is difficult, if not impossible.

The idea that HCR was going to pass represents information that was digested by the market late last week, anyway.

[matt819]

3. Why the insistence on a zero sum game?

So what if the insurance companies stocks rise? Invest in them. The fact remains that there are now controls in place that protect the average consumer from going bankrupt due to medical care costs.

[pundaint]

4. You mean the Democrats can win, And the Corporations win too? Democrats: "we

roll over for corporate interests, too!"

Enjoy this huge victory for your side, corporatists!

[BestCenter]

6. We should have a society that has the best interests of ALL of the people in mind

Both rich and poor, corporation and middle class, all in mind. Together we can win, as one people.

[MellowDem]

5. You don't understand the stock market...

It is a futures market that hates uncertainty. The passage of the bill or failure of the bill would've led to more investment because there would be greater certainty, simple as that. It doesn't necessarily mean that investors think there will be heavy profit gains, it could just as well mean that investors were hoping for more government control to create a more stable health insurance market where tons of people are not constantly being dropped and health insurance companies demonized. Just one of many variables. If the bill had failed, then stocks likely would have rose even higher than they did. The greatest fear was of a public option, mostly because it would mean heavy competition for private insurance.

I guess you should be congratulated on getting enough people fooled into a bet they would almost certainly lose unless a public option was in the bill.

[HughMoran]

7. I like eggs

[Cognitive_Resonance]

8. Insurance stocks did NOT spike

They were generally flat to down.

Health care provider and pharmaceutical stocks DID spike.

Insurance company revenues will likely be higher in future years due to coverage mandates, but profit margins are likely to be lower.

Usually a mistake to read too much into day-to-day market activity.

[havocmom]

9. Recced, but still didn't get this into postive numbers. Must be a lotta sore losers today

Yep, I recall you saying stocks would rise for insurance companies. What amazes me is that some here are foolish enough to bet they wouldn't.

:rofl: