NEW YORK (TheStreet) -- The future looks bright for health care stocks, according to one investment manager.
"Health care is no longer a defensive sector, it's actually a growth sector," said Mary Ann Bartels, chief investment officer of portfolio solutions at Merrill Lynch Wealth Management. "We have 10,000 baby boomers turning 65 who will need health care going into retirement."
On Thursday, the Supreme Court ruled in favor of the Affordable Care Act, also known as Obamacare, saying that federal subsidies within the law do not violate laws.
"The (ruling) is another positive point for the health care sector," Bartel added.
"There has been some suggestions that the hospitals would get hurt by this because the hospitals need more volumes,'" said TheStreet's Jim Cramer, portfolio manager of the Actions Alert Plus portfolio. "Now that this is out of the way, HCA and Tenet can go higher. These not expensive stocks, and they are still the ones you want to be in."
Health care stocks in the S&P 500 have risen 10.5% since the start of the year.
Meanwhile, Bartels is bullish on the consumer spending, and economic data released backed up Bartels' opinion. Consumer spending rose 0.9% in May, according to the Bureau of Economic Analysis. That's the largest gain in six years.