Tags: healthcare | stocks | bullish | obamacare

Money Manager Hays Bullish on Healthcare Stocks Regardless of Court Decision

By    |   Thursday, 29 March 2012 01:50 PM

Healthcare stocks are headed higher regardless of whether the Supreme Court overturns the 2010 Affordable Care Act, says Don Hays, head of Hays Advisory money management firm.

The court is likely to at least “moderate” Obamacare, he tells Yahoo. “We think stocks like Unitedhealth Group [and Aetna] seem like they’ll be beneficiaries in this period one way or another. I think that’s the way to play it.”

Hays maintains that Republicans and Democrats will agree on a workable healthcare reform plan within two years. “When you look at both sides of the aisle, there is definitely a measure to get this done right this time,” he says.

In the meantime, aging baby boomers provide good demographics for the healthcare industry. “So the base is very good for healthcare stocks with or without this [healthcare reform],” Hays says.

Healthcare stocks endured a sharp decline last year between July and November. “So we have seen many of them undervalued,” Hays says. “They will probably be the beneficiaries of all this.”

Les Funtleyder, portfolio manager for the Miller Tabak Healthcare Transformation fund, agrees with Hays that reform is ultimately coming.

"Even if the whole law is overturned, the conditions that led us to need reform -- namely that health care costs are out of control -- are still there," he tells CNNMoney.com. "We will still need some sort of reform. People will realize that when cooler heads prevail."

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Thursday, 29 March 2012 01:50 PM
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