The future looks bright for health care stocks. ‘Health care is no longer a defensive sector, it's actually a growth sector,’ said Mary Ann Bartels, chief investment officer of portfolio solutions at Merrill Lynch Wealth Management. ’We have 10,000 baby boomers turning 65 who will need health care going into retirement.’ On Wednesday, the Supreme Court ruled in favor of the Affordable Care Act, also known as Obamacare, and said Federal subsidies within the law do not violate laws. ‘[The Supreme Court ruling] is another positive point for the health care sector,’ she added. Hospitals like Tenet Healthcare (THC) and Community Health Systems (CYH) rose 13 percent on the ruling, while HCA Holdings (HCA) posted a nearly 10 percent gain. ‘There has been some suggestions that the hospitals would get hurt by this because the hospitals need more volumes,’ said TheStreet’s Jim Cramer, portfolio manager of the Action Alerts PLUS portfolio. ‘Now that this is out of the way, HCA and Tenet can go higher. These not expensive stocks and they are still the ones you want to be in.’ The rally wasn’t limited to hospitals. Health insurers like Aetna (AET) and UnitedHealth (UNH) added 2 percent on the news.
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