Health Care Law Proves Big Profits on Wall Street

By Dave Jordan, NEWS 9

OKLAHOMA CITY -- There's still debate as to whether the landmark health care law will be good for America, but it's definitely proving to be good for big business, at least for the moment.

The health care sector has a reputation for being able to survive and in some cases thrive no matter what the economy is doing. That continues to be the case judging by Wall Street's reaction to the health care bill.

Friday's closing bell capped off one of the best weeks in Wall Street thanks to investors buying into nearly everything tied to the health care sector.

"Pharmaceuticals, hospitals, clinical laboratories, those are really expected to benefit from the passage of the health care bill," said Chad Goodman, Geary Securities-Senior Vice President. "Right now, I think that we're seeing a little bit of euphoria in the sector."

The numbers bear that out. The Dow Jones Industrial Average closed up four out of five days this week. On Tuesday, it hit the high for the year. That's the same day President Obama signed the health care bill into law. There is a strong belief in the financial community that growth will continue.

"We'll be looking at anywhere from three months to two, three years down the road," Goodman said.

It's not just wealthy investors who are seeing profits. Most Americans could also reap financial rewards through their 401K and other retirement accounts.

"It would be a good portion of anybody's portfolio," Goodman said.

But not every part of the sector is expected to have huge returns. Insurance companies and health care providers, both of which will have greater regulation, could see smaller profits over time.