An article on Disease ETFs from Business Week got me thinking about medical care growth stocks. I’m not going to endorse ETFs because their main purpose is to generate expense fees for the investment firms, not to build your wealth. We’re interested in building wealth on this blog so let’s skip the ETF talk for now.
The Baby Boomers maintain a direct correlation to medical care revenue. Aging American AND Global populations will cause a huge demand for health care, medical instruments, and new Bio Technologies. How do we relate this information to the market?
Look for smaller medical care companies with large growth potential.
Biotech Stocks and funds are the way to go instead of ETFs if you want the greatest returns. I did some research and found two smaller companies that fit the profile above.
LCA Vision (LCAV) is a developer and operator of laser vision correction facilities and utensils. They offer the trademark LasikPlus vision correction service and will see a growth in revenue due to increased demand for eyesight correction from baby boomers. When eyesight fails, people call their doc and schedule eye surgery because glasses and contacts are so 20th century.
Palomar Medical Technologies (PMTI) is more of a vanity play on the aging population that loves to look their best. They produce light based lasers and products that treat medical and cosmetic problems such as skin lesions, rapidly aging skin, and other related ailments. If you haven’t seen their products before, keep yours eyes peeling because they are out there.
Given the volatility of these stocks, please invest with caution. The smaller the company, the more their beta fluctuates. Track these stocks and do some more research to uncover small growth companies like LCAV and PMTI. If you want to make money in the market, know what the street does not. Use the street’s aversion for smaller companies to your advantage, then laugh all the way to the bank.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.