Obamacare's Irrational Exuberance?

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Where some see problems, others see opportunity.

That's happening now with the launch of the health insurance exchanges established by the Affordable Care Act, commonly known as Obamacare. Exchanges operated by the federal government as well as those run by several states experienced multiple technical problems on the first day of operation. 

Optimists pointed to these problems as a good sign, because the heavy volumes mean heavy interest. Health insurance stocks were up on the news, particularly WellPoint , which is participating in exchanges in every state where the company operates. Even insurers that are taking a more cautious stance, such as UnitedHealth Group , saw shares climb on day one of the Obamacare exchanges.


In the video below, Fool analyst Max Macaluso talks with contributor Keith Speights about why there could be a case of irrational exuberance with respect to the initial reaction to high traffic volumes on the exchanges. Watch their discussion to find out if the bad news about glitches really means great news for Obamacare.

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The article Obamacare's Irrational Exuberance? originally appeared on Fool.com.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends UnitedHealth Group. It recommends and owns shares of WellPoint. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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