Broken Baby Boomers
In Wednesday’s Sea Change, Pete Najarian brings you a trade so good it will leave you weak in the knees.
Najarian explains that 78 million Baby Boomers are nearing retirement age and consequently the market for orthopedic devices promises to see explosive growth. He adds demand for knee replacement will soar 673% by 2030 while demand for new hips will jump by 174%.
Najarian believes with the soaring demand for implants, it’s the device makers who will see a windfall.
He says the trades are Zimmer (ZMH), Stryker (SYK), Johnson & Johnson (JNJ) and Smith & Nephew (SNN).
Guy Adami adds he likes Zimmer best.
Karen Finerman prefers JNJ.
Jeff Macke thinks Callaway Golf (ELY) is a buy because Boomers are more agile in their golden years.
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Trader disclosure: On Sept. 12, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (HAS), Najarian Is Short (GS), Finerman's Firm Owns (DVA), (WMT), (COP), (JNJ); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; NBC Universal Is The Parent Company Of CNBC