Welcome to Thoughts on the Market.

I'm Michael Zezis, Head of Public Policy Research and Municipal Strategy for Morgan Stanley.

Along with my colleagues bringing you a variety of perspectives, I'll be talking about

the intersection between U.S. Public Policy and Financial Markets.

It's Wednesday, May 5th, at 9 a.m. in New York.

Texas versus California.

No, we're not talking about a college football game.

We're talking about the Supreme Court case.

One where the ruling should be issued any week now, and investors should pay attention.

The case is about the Affordable Care Act, or what the media commonly calls Obamacare.

The law could be struck down if the court rules in favor of Texas.

While most court watchers deem this unlikely, it's not impossible.

And if it happened, then health care coverage could be in question for about 20 million Americans

who gained it under Obamacare.

If this were to happen, we'd expect the focus of Washington DC to immediately turn to

addressing this issue as quickly as possible, with Democrats pushing to remake the Affordable

Care Act, but this time with a public option and a lower Medicare eligibility age.

Two factors that could benefit the market for the larger managed care stocks.

But this is more than a sector story.

Rebuilding Obamacare would take a lot of time in negotiation, likely delaying the $4 trillion

bill back better infrastructure plan, whose fiscal boost is largely expected by investors

across macro markets.

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