For those that invest in the stock market it is important to watch for events that are happening in government, and with the regulators to determine which businesses might succeed, which might fail, and which might get a little boost from government intervention in free markets, but what about the opposite? What happens when government either decides not to, or is prevented from interfering in free markets for various reasons? Let me give you a for instance.
What if the Obama Care healthcare insurance plan that the government is proposing fails to pass Congress or the Senate? Which stocks might gain if this happens, as it looks like it might? Well, Health Insurance Stocks could run big time? Because right now in the Obama-Care program they are proposing, a government run health care insurance program would compete with free enterprise healthcare insurance programs.
This means that healthcare insurance stocks would be hit hard, as we are seeing now, but if the proposal or health care plan that the government has in mind fails, those stocks could increase and have a huge uptick.
The goal of buying stocks of course, is to buy low and sell high, and if the privately run healthcare insurance programs and companies have been hit by the government’s announcement to compete directly with them, then if the government decides not to, those stocks will climb back up in a very brisk pace thus, if you own those stocks you might just make a lot of money.
Please understand that I am not a financial advisor and this is merely my own personal opinion of government intervention in the healthcare sector. Please consider all this.