Mad Money

Cramer Trades Pending Health Care Ruling


In Washington, anticipation is mounting for the U.S. Supreme Court’s decision on the constitutionality of the healthcare reform law, known as the Patient Protection and Affordable Care Act.

The law has inspired both political and legal battles from the moment President Barack Obama signed it into law more than two years ago. It has been challenged by 26 states which contend the so-called individual mandate is unconstitutional. In March, the Supreme Court heard six hours of oral argument regarding the law. Although the high court will not say when it will rule on the case, published reports suggest it could happen in the next two weeks.

Jim Cramer

In turn, many investors are buying health care stocks on the belief the law will be overturned, said Jim Cramer on CNBC’s “Mad Money.” Cramer thinks the law could be struck down, but doesn’t recommend buying health care stocks. Instead, he suggests retailers Wal-Mart or Home Depot.

“These companies are huge losers in Obamacare as they'll have to bump up their insurance benefits big-time,” Cramer explained. “No Obamacare means they won't have to spend more on benefits.”

—Reuters contributed to this report

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