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Given that report are it was sticking with health care stocks much more how there performing.
And how you should be investing perhaps around the health care decision today for that we -- Thomas Carroll Thomas is the managing director Nicholas.
Thomas -- had you know spend a lot of time talking about the politics of the decisions -- now let me get your investment ideas and first your reaction to the broad market selling off today the Dow is down a 155 points.
Do you blame the supreme court for the sell off.
Yeah inching question and here's -- -- pertains to the broader market I think though the world is viewing this says bigger entitlements more taxing.
Therefore you know less dollars to go other places.
-- -- I think for I think very much of the market's reacting to that.
And -- to showed us hospital stocks up insurance stocks are down.
In today's trade is that how you would've expected those industries to react.
-- kind of -- I think all overall we expect that the mandate to be upheld.
Following the view of a number of constitutional experts but hospitals -- expected -- to be up on a ruling like this.
Managed care companies I think we expected them to be neutral to perhaps up a little bit.
I think the the -- -- -- on the managed care company stocks today.
Is related much more to the outperformance over the last couple weeks that we've seen right I think consensus on the individual mandate getting completely killed.
Just completely ramp in the last two weeks push those stocks higher so we're getting a surprise I think out of them out of by the Supreme Court today market's taken of stocks back a bit.
What -- health care stocks to own for the long term or at least through the presidential election because there's no guarantee implementation.
-- great question great question I think today's ruling to me just solidifies an opinion that says.
We want to own the large managed care companies national focus a lot of scale to meet up -- United Healthcare.
As well as WellPoint.
The other -- -- point -- are the Medicaid focused names companies like a mirror group.
-- lean out -- care and Centene.
Today's ruling you know gives more visibility on another -- of growth.
For those Medicaid focused companies given that the definition of Medicaid eligibility now getting expanded.
So does the ruling.
Decision -- a free you.
On the answer more questions or does it create more questions as to.
Of health care in this country and then this is very broad based question -- take it anyway you want all the way down to the specific stock -- Right -- her great yet know I think you know act every day we have new questions right now I think the one the one certainty is and I speak for myself and that all health -- analyst.
We're glad this decision is over an overhang is out of the way but I think the questions now -- fail.
How -- the election impact what we're hearing today.
Will be managed care company taxes.
Will this -- encourage employers to dump.
Employees into the exchanges all of these things are gonna impact these companies overall it again our recommendations are really based on companies with a lot of cash.
A lot of scale national focus and ability -- really to maneuver within whatever the you know whatever the future law looks like however it is -- post the elections.
Right so when you're doing your homework on health care related stop deciding whether or not to purchase that Thomas so are you suggesting just keep your -- -- just look at the traditional fundamentals.
How much of the health care profile of this country do you have to.
Put back into that fundamental homer for doing or you looking at technicals are you looking whether or not it pays dividends.
Are all listings yet so right so so again I think at this point and you pointed out we still have a lot of questions.
I think the industry is gonna see.
-- a lot of change going forward I mean -- we do I guess have some visibility now that the Supreme Court has upheld the HCA.
Given that we want to stick with the large companies proven products.
Ability to sell into all -- -- at literally any market out there.
And again maneuver within that whatever however the law -- recast it if at all.
And that's to me really is that you suggested the big names and you imagine -- -- obviously.
What kind of balance sheets do we have -- we wanna see a lot of cash.
What is the valuations on the stock's relative to history and again that just points of the names I think that we have highlighted already.
Guess a lot of information thank you so much for your time Thomas Carroll.
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