Did You Get Your Gift From The US Government?
I just finished up the last of my Christmas shopping. I even finished wrapping everything last night… talk about being ahead of the curve! I managed to grab great gifts for everyone on my list… and even managed to pick up a few things I wanted. Just promise you won’t tell anyone all right?
Now, this Christmas shopping was far from hassle-free.
I’ll spare you the crazy antics. No point in rehashing multiple trips to the mall, attempts at communication with incoherent sales assistants, or my observations on the crowds… or lack thereof.
The big holiday is only a few days away… but I can’t help looking beyond Christmas and even New Years Day.
I’m already thinking about 2010. What will the stock market do? How should I reallocate capital this year? Should I dedicate more capital to currency trading or penny stocks? But the biggest question for all of us is:
Where will I get the best returns in 2010?
This question’s an easy one to answer in my mind. Right now the US government is handing out gifts to investors… but you have to know where to get yours. It’s a gift that provides savvy investors an opportunity to make huge amounts of money in 2010.
Anyone can get it… You just need to look under the tree… or in this case, the markets.
What am I talking about?
Let me ask you a question… what industry has the US government thrown into absolute turmoil over the last year? I’ll give you a hint… it’s not the banks.
If you guessed healthcare, give yourself a big, gold star.
As soon as the Democrats took control of both Congress and the White House, one of their first acts was to start tinkering with healthcare. Like taking your car into a shady auto repair shop, that simple tune-up has now become a major engine overhaul.
Congress has turned the entire healthcare industry on its ear. And nobody knows quite what the industry will look like once they’re done.
Why is this a gift?
Right now, Congress is scaring investors away from the healthcare industry. Nobody knows which companies are going to come out smelling like a rose… and which ones will have 20 tons of manure dumped on them.
For the last 12 months, investors have avoided the industry like the plague… and deal making in the industry has practically ground to a halt.
But that’s all about to change.
The deals are starting to flow again. And Congress is nearing the end of its law making process… like making sausages, it’s not something you want to watch for too long.
Once Congress gets its act together, many healthcare stocks are going to skyrocket. But one area of healthcare looks particularly attractive – biotechnology.
Why am I so sure?
Just look back to Bill Clinton’s presidency in the early 1990s. He pushed for major change in the healthcare system. As a result, healthcare stocks were stuck in the mud for quite a while.
Once investors knew what changes were being proposed… and had a chance to study and digest the changes… stocks skyrocketed.
The fear of the unknown was lifted.
And that’s what we’re about to see here.
I’m not going to go into all the details here (just don’t have the space). Just suffice it to say that the winds of change are at the back of biotech stocks!
Regardless of the changes Congress makes to the healthcare industry, these companies will thrive. There will always be a demand for their products and profits will be enormous.
Category: Stocks
