Weekend Update: The Pig Through the Python

 

 

The pig-through-the-python is a metaphor describing the baby boomer generation bulge moving through the cultural and economic cycles of the past 75 years. From the birth of the generation between 1946 and 1964, through their retirement years which are just beginning now, this demographic group has been at the forefront of cultural evolution and US economic development and growth. Every sector of our economy has courted and then profited from the needs and demands of this generation. From the post-war birth rate into toys (1950's), higher education (1970's-1980's) the decades-long real estate spurt (1980s'-2000) and stock market boom from the 1974 lows well into the new millennium, the baby boomer bulge has created a demand cycle unparalleled in US history.  

As this generation advances into their retirement years new needs and demands are emerging.  Whatever the future may hold for real estate and the stock market, especially in light of the dwindling participation of this generation as home buyers, consumers, and investors, one area of unprecedented opportunity is just now coming into view: Healthcare.

The boomers are getting old and beginning to lose their health...and dammit, they want both back. There is nothing they can do about the former, but there is nothing they won't pay for to get the latter. The enhancement of human life through next generation medicine, diagnosis and treatment, is the burgeoning new commerce our time. Waiting stage left are an estimated 75,000,000 baby boomers with a demographic signature that will provide an incalculable demand for state-of-the-art medical services, a demand equalling if not exceeding needs and demands of the past. The boomers transformed and expanded the infrastructure of the economy over the past half-century and is now poised for its finale: "See me, feel me, touch me, heal me." 

It is the recognition of this pig-through-the-python phenomenon, along with the exponential growth in medical research and discovery that is providing investment opportunities beyond electric cars, social media and cloud communications. At the forefront is Biotechnology and Genomics, which together are uncovering and creating novel approaches to cancer, heart disease, Alzheimers and a host of other diseases that don't just affect baby boomers. Nonetheless, the boomers as a powerful demographic group are knocking on the door of the medical services sector, with their savings, insurance benefits and Medicare in tow, ready willing and  able to buy and maintain their health, whatever the cost. It's the health sector's turn to court the boomers, and the boomers are all but ready to be courted. Healthcare in all of its manifestations is the sector that will lead the economy in the next 10-20 years, maybe well beyond.

We are taking hold of this tiger by the tail (or pig through the python if you will) with an expansion of this service into well situated cutting edge medical technology stocks. All included in the same subscription fees that until now covered just our option trading advice. These are the stocks that are best situated for 75,000,000 deteriorating bodies and minds in need of care and healing will be the big winners in the years ahead.

In No Particular Order: Three Leading Edge Opportunities

NanoString Technologies (NTSG) 

The link above takes you to their website where you can get as detailed a look at this company as you want. In straightforward easy to understand language, NTSG develops advanced and highly sophisticated state of the art cancer diagnostic tools. Cancer is the scourge of the 2000's and the second leading cause of death behind only heart disease. North America has the world's largest market for noninvasive cancer diagnostic and technologies, followed by Europe. NSTG, although going up against some bigger names, much bigger names, in the sector, that only makes an eventual buyout all the much more likely. AS the chart below illustrates, NSTG has risen from $6 to $27 (Friday's high print) over the course of the past 12 months. This a mammoth move in such a short period of time.  

 

Buy here, and buy the dips. 

 

Intermediate Term Option Trades - Standard Service

 

Short Term Option Trades - Premium Service