Wall Street Relieved by Health Reform

Beller, P. (2010). Wall Street relieved by health reform. Retrieved March 24, 2010 from: http://www.forbes.com/2010/03/22/briefing-americas-closer-markets-equities-healthcare-hospitals.html?feed=rss_home

This article, published on forbes.com Web site, reports that Wall Street investors are relieved that the healthcare bill has passed and that health-care related stocks lifted the major indexes on Monday after the passing of the bill. The stock market does not like uncertainty and the passing of this bill took away a lot of uncertainty in the market. Stocks in many health-care related companies jumped suggesting investors believe that the new reform will be good for some healthcare providers. Stocks in major hospital operating firms went up as well as pharmaceutical companies to a lesser extent. This article shows that perception and lack of uncertainty are very important factors in the market because there is a long way to go before people will know how the health-care reform bill will affect the economy. There are many factors that can affect the stock market and the economy as a whole. It is important that managers and investor keep up with what is going on in politics and in the economy so they can be prepared to respond to changes that can affect it.