Are Healthcare Stocks the Next Hot Sector?

Are Healthcare Stocks the Next Hot Sector?

your thoughts, and why

Public Comments

1. The ultimate goal of the Democratic party is to have a single payer health care system operated and funded by the federal government. With that as a stated goal I would not consider health care stocks a good long term investment.

2. No.

The Health care sector will continue as it operates now, with less choices for the end user. Through Medicare and Medicaid, the control that is already exercised on the price structure of insurance plans is massive, but doctors and doctors associations, as well as pharmaceuticals will continue to exist. The greying of the American population, fueled by the economic uncertainty (having less kids) will continue and that increasing sector of the population demands more and more expensive health care. But this does not mean is the NEXT HOT SECTOR.

It will depend on macroeconomic factors which affect spending as a whole, tax reform, tax revolt, federal funny money, consumer demand, peoples savings, and whether the administration budget will be regarded as the beginning of the end by the self-aware (more than ten trillion dollars estimated now by the non-partisan Govt Accountability Office), or as the silver bullet of salvation by the ignorant and the deluded many.

3. No. The next Hot sector is green energy stocks, particularly solar power. I remember seeing one solar companies stock jump the day before inauguration day. I've seen green energy stocks and exchange traded funds all make new trends particularly in the last few trading days.

Have a look at solar company FSLR's net growth per year: http://finance.yahoo.com/q/is?s=FSLR&annual . Notice how fast operating and net profit is growing per year. FSLR's is at fair value compared to the overall undervalued market, but its future both financially and environmentally looks bright.

The developments in health and pharmaceuticals:
In regards to Democrats: http://www.recovery.gov/?q=search/node/healthcare
Google and IBM have teamed up to develop software to allow patient data to be stored on Google's server: http://www-03.ibm.com/press/us/en/pressrelease/26603.wss
Pfizer has taken over rival wyeth: http://www.premierbiopharma.com/
Merck and Co. also made a takeover in 2009.