The widely-varying cost of medical care in the U.S. was a subject I highlighted for Boom & Bust subscribers in our June issue, exactly a year ago.
I explained how government healthcare programs – like Medicare and Medicaid – eat up nearly a quarter of the federal budget each year. And, how a 75% increase in Medicare enrollees – thanks to Baby Boomers – would stretch, break and blow our budget as healthcare costs rise far faster than inflation.
At the time, I recommended a specific investment that every long-term investor should own. One that I expected, over the long-run, would greatly benefit from the wave of aging Baby Boomers and their need for low-cost treatment alternatives.
This was intended to be a long-term play. The problem is… in the short-term… this investment rocketed higher – up to 84% higher in less than a year! That’s seven times higher than the S&P 500’s return in 2012. And it’s 25 times the annual yield on 30-year U.S. Treasury bonds.
So how’s that a problem?
Well, it’s not a problem for the Boom & Bust subscribers who got in on my original recommendation back in June 2012. It was a problem for the latecomers who continually asked, “Can we still get in?”
For most of the last year my answer has been, “No. Don’t chase prices… wait for a pullback.”
Now, we’ve got what we’ve been waiting for…
Against the backdrop of a broad market pullback, this investment is selling at a 15% discount to the price it was fetching just a couple weeks ago.
There’s nothing wrong with the investment itself. The most recent quarterly earnings report was stellar. Goldman Sachs, just two months ago, began covering the stock with an initial “buy” recommendation and price target of $41 per share, which is 26% above current price.
The pullback we’ve seen is nothing more than that – a brief pause in a long-term uptrend. Just yesterday this investment traded at the 38.2% Fibonacci retracement level – a key buy zone – where long-term investors, previously left behind, can join the uptrend.
In other words, here’s your opportunity to jump onto the Baby-Boomer driven healthcare bandwagon for a ride to the pot of gold.
If you’re a Boom & Bust subscriber, and you missed the boat last June, add this healthcare play to your portfolio immediately.
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