Want to boost your investment portfolio? One way to do could be to look to the future healthcare needs of aging Baby Boomers. Part of making good investing decisions is being able to look into the future and see what needs might need to be fulfilled in the future. One reason energy stocks are on the rise again is because the future needs of China and India, along with the likelihood that American demand will not decline, are being taken into account by investors.
But you don’t have to invest in energy to take advantage of future needs. Right now, focus is shifting to what an aging Baby Boomer population is going to need in the next two decades: healthcare. But it’s not just any healthcare. Baby Boomers are looking for ways to stay comfortably active as they redefine what retirement means. And this means that companies that innovate interesting medical technology and solutions are the companies that are likely to win. Some of them are winning already. BusinessWeek reports on medical technology stocks:
Take Zimmer Medical (ZMH).
The company’s jet-powered stock—up almost 50% in the last year—has
received support from its 2006 introduction of a knee implant designed
to suit the female body, and analysts remain positive. Reducing the
post-operative pain for women, the device is designed to enable women
to remain more active than preexisting unisex models.
Beyond implants, [orthopedics consultant Robin] Young suggests that regenerative cures may
ultimately take market share from artificial additions. Osiris
for one, is developing a stem cell therapy to regenerate cartilage in
the knee, though this is likely years away from availability.
Stock investing is generally considered a long-term financial planning device. If you make good investing decisions now, considering likely future developments, you might find that your nest egg is quite large when it comes time for you to retire.