Our bodies should come with some sort of meter that measures how many months of pain-free living we have left, so that once we cross over into our late 40s, we’re prepared for the aches and pain that inevitably assault us.
Of course, the ailments that those of us in generation X feel pale in comparison to the health problems that the boomers face.
At this point, their entire generation has crossed over the great divide of age 52, the point at which their spending on pharmaceuticals and other health care items ramps up exponentially.
With more than 100 million people now driving up their health care spending, this sector should experience phenomenal growth for years to come. The fact that most developed nations around the world have large, aging populations just adds more fuel to the health care fire.
But you knew that.
No one is surprised to read that people over 50 consume health care at a faster clip than younger people.
No one is surprised to read that nations across the globe are aging.
What might surprise you is how you can now leverage this knowledge — by pairing it with a new source of information — to find profitable investments.
For that, we have to look elsewhere. And that’s where our resident Marine, Ben Benoy, comes in. When he’s not out on training missions (like he is today through Sunday), or fine-tuning his unique trading strategy, he’s scouting one particular area of the internet…
Most companies develop new products and services over time. They ask potential buyers what features and benefits are most important to them, and then roll out their new wares amidst a marketing campaign. Health care companies, and more specifically, drug companies, do it differently.
They know ahead of time what sort of demand exists for a given treatment because their potential market is based on the number of people diagnosed with a certain disease or condition. The problem with developing new drugs is the cost and scope of clinical trials and approvals required before they can sell the medicine.
Now, there’s good reason for the process, even though it currently seems more onerous than it needs to be. Still, every step along the path to approval leaves a new drug open to the possibility of failure.
So drug companies pile a bunch of money into what they see as the most lucrative potential areas of treatment, and then wait as the results of each clinical trial and every approval hearing is released.
When such news is released, it spreads across the internet in seconds. Of course, watching for and trading on this data is common. It makes sense that investors would want to get involved with a promising new drug, or quickly get out of a company whose latest compound just failed in a clinical trial.
But this approach doesn’t give you an edge, since the information is available to everyone, including high-frequency traders and professionals who can react faster than anyone else.
That’s why, instead of watching the releases on clinical trials or approval hearings, Ben watches how other people react to the news. In particular, he tracks whether people think the stock of a drug company is set to go higher, or is expected to drop.
Using software that he developed and programmed, Ben monitors what people are saying on social media sites like Twitter and Facebook about different biotechnology companies.
His program also keeps track of what each individual said about the stock of each company (whether they expected it to rise or fall), and then compiles a virtual track record for them. This way, it can give more weight to those who have been right in the past, and better predict which companies are likely to yield profits in the future.
The best part of Ben’s program is that it’s unique, and that’s not a word I throw around. Ben’s nearest competitors simply track the number of times a company is mentioned without the level of sophistication that he brings to the process.
In this way, Ben has combined the best of both worlds — our existing research and his new approach. In the sector that our analysis identifies as one of the most favored for years to come, Ben uses social media in a way that no one else does to parse out positive and negative trending information, resulting in high probability trades.
Because this is something you’ve likely never seen before, and there’s so much more to it than I can do justice in this piece, we asked Ben to record a series of three videos to explain exactly what his program can do. If you want to watch them, simply add your name to the mailing list and we’ll send you the first one on Monday.
P.S. We’ve also asked Ben if he can develop something like that body meter I mentioned at the beginning. We’re still waiting for a reply on that one…
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