Three Reasons To Invest In Health Insurance Stocks

One of the main goals in investing is to make your money work for you. Investing your money into the stock market allows you to do more with less dollars. When you are choosing which stocks and mutual funds to invest in, you should diversify your investments to protect yourself. Many experts are now advising clients to throw money into stocks in the healthcare and other medical-related areas. There are three main reasons for the up-trend in healthcare investments.

Obamacare

One of the biggest reasons for the climbing values of stocks in the healthcare sector is the Affordable Care Act, commonly known as Obamacare. While this plan has been and still is very controversial, it has had a positive impact on many healthcare stocks. Obamacare has increased the competition among health insurers; if insured individuals are unhappy with their current health care plan, they now have the ability to shop around for a plan that better suits their needs and their budgets. In addition, Obamacare has increased the number of Americans who are covered by health insurance. In 2012, the Administration estimated that nearly 16% of the population was uninsured; this number has decreased to less than 10%. This increase in the number of insured citizens has had a great impact on increasing the price of health industry stocks.

Presidential Election Cycle

The Presidential election will occur in November; stock market analysts show that the stock market is typically on an upswing in the last two years of any presidency. Then, for the first two years of the new president's term, investors will be cautious and the market won't be as busy. Now is the time to take advantage of the increase in trading and get some profitable stocks while they are available. 

Mergers and Acquisitions

Some major players in the health care sector are planning some big mergers and acquisitions. These events all have a part in increasing the profitability of health care stocks. The time to purchase the stocks in these areas is now, to enjoy a great return on your investment.

It is important to consult with your investment professional on a regular basis to discuss your investment strategy and make any necessary changes. You should also readjust your strategy when you have a life-changing event. Your financial advisor is the best source of information on investment trends and things to look for in the stock market in the coming months. With the help of the right investment advisor, you can turn a small amount of money into a great nest egg to help you enjoy your retirement years.

Talk to a business like Culbertson Financial Services for more information.