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CITI: This was last big challenge to Obamacare

Jun 25, 2015, 23:23 IST

The Supreme Court voted 6-3 in favor to uphold the Affordable Care Act, aka Obamacare.

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"With the uncertainty of the ruling behind us, we think this will be the last significant challenge to the Affordable Care Act," Citi's Murali Ganti said.

Immediately, hospital and health insurance stocks spiked.

"We think this ruling calms those fears and believe positive sector conviction will follow, allowing investors to once again focus on fundamentals," Ganti noted. "Predictably, hospital and managed care stocks have been rallying this morning given that they were the most at risk."

And now that this is behind us, everyone including the folks in Washington can move on.

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"The ruling represents the best possible outcome for Democrats, but more importantly for Republicans, who remain more focused on capturing the White House than having to defend their position on why 6.4 million individuals could potentially become uninsured."

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