If you follow the headlines, you'd think the last place to invest your hard-earned money is in healthcare.
After all, Obamacare remains one of the most polarizing pieces of legislation enacted in a generation.
Consider that a new poll by Rasmussen Reports shows that just 39% of likely U.S. voters have a favorable opinion of the Affordable Care Act, while 54% view it unfavorably.
It will also play a huge role in this year's congressional elections.
A new poll by USA Today and the Pew Research Center found that 54% of those surveyed say a candidate's stance on Obamacare is "very important" in deciding the election.
But here's the thing. As technology investors, our job is to look beyond the politics of the moment and take a look at what others may be missing.
Turns out, if you picked the right healthcare investment over the last two years, you would have beaten the S&P 500's returns by more than 50%. And here's why…
This Demographic Trend Is a Rock-Solid Profit Foundation
And the reason is simple – despite our political climate, companies that can bring new advances to the market in a cost-effective manner and firms that can help control rising health expenses are witnessing a boom in demand for their products and services.
That means new drugs, medical devices, and technology platforms that keep a lid on costs will continue to do well no matter what happens with the midterm elections and Obamacare.
The demand for healthcare will only grow. The United States has more than 76 million Baby Boomers, those born from 1946 to 1964. They are living longer, more active lives and getting the medical treatments needed to do so.
Thus, we have years of sustained demand for healthcare, as well as medical technology, benefits processing platforms, biotech, new drugs, and devices like artificial knees and hips.
But there's just one problem. The sheer volume of potential stocks in all the affected sectors presents us with a bewildering number of choices.
And in such a fluid, dynamic market, separating the long-term winners from the losers and the also-rans is no easy matter.
Here's the Best Door into a Crowded Room of Choices
That's why investors would do well to take a good look at First Trust Health Care AlphaDEX (NYSE: FXH) ("First Trust Healthcare"). This investment gives us access to several sectors within the overall healthcare field. These include pharmaceuticals, life sciences tools, medical equipment and services, as well as biotech and healthcare providers.
With just this one investment we get insurance, medical records technology, genetics, and even in vitro diagnostics.
Clearly, this fund has an excellent mix of companies. Let's start with Stryker Corp. (NYSE: SYK), a medical device firm that is a leader in hip and knee joint replacements.
Then there's Charles River Laboratories (NYSE: CRL). The company provides outsourcing for clinical research, allowing drug firms to keep their overhead down and pass the savings on to patients and their insurers.
But that's just a taste of what this broad ETF has to offer. The top 20 holdings read like a "Who's Who" of medical science.
These are companies that will do well no matter how the nation chooses to manage its healthcare dollars:
About the Author
Michael A. Robinson is Defense and Tech Specialist for Money Map Press. He is a 36-year Silicon Valley veteran and one of the top technology financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
Michael is 100% independent and receives absolutely no compensation from companies he writes about. His ideas are completely his own.
So, it probably goes without saying that you won't ever be left in the dark about breaking innovations, ahead-of-their-time technologies, and breakout companies on the cusp of changing the world once you join this world.