There are a few areas that make up a well-rounded portfolio:
- Real estate
So why medical?
The costs of medical care are increasing. Although the health-care spending has slowed in the last few years, there is most likely going to be an increase in the next few years.
When the spending goes up, the money goes somewhere, and that money usually ends up with companies that can control that spending.
The technology that is being placed in health care is coming from well-funded, big investments. This means there are plenty of opportunities to invest in healthcare technology. What does healthcare technology look like?
- Surgery assisted by robots.
- Increased rates of diagnosis using AI
- MedComp Sciences Roz, the healthcare assistant
All of the technological advances can speed up life-saving procedures and see some significant developments in drugs and treatments.
Concepts that you should look out for:
- 3D printing
- Monitoring Devices
There are more of us, and we are getting old. According to PRB, the number of Americans that were 65 or older will almost double from 52 million in 2018 to nearly 95 million in 2060.
And what does an aging population need? Healthcare and a lot of it.
That is just for America. The number of elder and aging populations is increasing all over the world. There will be a significant demand and increase in the need for high-quality healthcare.
If you know stocks, then you know where there is a demand, there is an opportunity.
When investing, we are often drawn to the same type of investment over and over. The problem is that when you put all of your eggs in one basket, you can end up with a significant loss in the area.
Choosing to vary your investments gives you are more rounded portfolio and the perfect way to diversify your investments.
Even within the healthcare industry, you can choose where you wish to invest. You may choose to invest in technology or health insurance heavily. You have to make the decisions based on what you see happening and after reading plenty of investing literature in the medical area.
What are the different styles of healthcare stocks?
There is plenty to choose from when it comes to investing in medical stocks; here are some of the options you have:
- Medical supply stocks – think scrubs, medical sponges, computers, gloves, scalpels. All of these come from medical suppliers, and they have to be constant. Boston Scientific, Johnson & Johnson, and Medtronic.
- Health insurance stocks – they follow the rules and make profits too. Anthem, Centene, and Humana.
- Biotech stocks – hormone therapies, genetic therapies, and advanced research. Celgene, Biogene, Moderna, and Amgen.
- Pharmaceutical stocks – almost 50% of Americans have a prescription drug in any given month. Pharma companies make great money. Check out AstraZeneca Merck, Pfizer, and Novartis.