Boomer Nation: Health Care Avalanche
Every eight seconds a baby boomer turns 50 and though it is often the best time of life, the 50's can also be the beginning of something else entirely.
Unfortunately, it’s also the age when serious health issues present themselves -- and present themselves, with a vengeance.
5 million people over age 50 have diabetes not to mention the millions more with heart disease, osteoporosis, cancer, etc.
And if that's not enough to scare the life out of you, check out this stat. According to a 2008 report, one in eight boomers will develop Alzheimer’s Disease. You read that right - one out of eight.
Yikes, where are the razor blades??!
Fortunately, we do have some less depressing news for you too. There are a growing number of treatments for all of these ailments.
But Fast Money is a show for investors not health care professionals. Why must you know this?
Because Wall Street pros expect a greater and greater portion of the generation's $7 trillion in collective wealth to go towards pills and procedures. That would suggest drug companies with the best pipelines will emerge as winners.
What’s the trade?
Stephen Weiss - a leading health care banker at Leerink Swann – thinks Merck is set for its own boom. "Merck has one of the best pipelines in big cap Pharma," he says. "And big cap Pharma is very beat up. With over a 4% yield investors are paid to wait for Merck's phase 3 pipeline, which is very robust, to come to the market."
Also, he suggest looking at managed care, despite a government crackdown. "Wellpoint is also a very attractive stock," adds Swann.
Meanwhile, Pete Najarian suggests betting big on biotech. I like Cephalon, he says.
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Trader disclosure: On March 4th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (INTC), (BTU), (MSFT), (GS), (NUE), (C), (AGU); Seymour Owns (AAPL), (BAC), (EEM), (F), (CX); Finerman's Firm And Finerman Own (RIG); Finerman's Firm Owns (XBI); Najarian Owns (BAC) Call Spread; Najarian Owns (F) Calls; Najarian Owns (PCX); Najarian Owns (PFE); Najarian Owns (TEX) Calls; Najarian Owns (TIVO) Call Spread; Karabell Owns (MTW), (JPM); Edwards Owns (GLD) For Clients; Edwards Owns (SPY) For Clients; Edwards Owns (QQQQ) For Clients; Edwards Owns (GS) For Clients; Edwards Owns (JPM) For Clients; Edwards Owns (WMT) For Clients; Edwards Owns (BKE) For Clients; Jon Najarian Owns (BAC), Is Short (BAC) Calls; Jon Najarian Owns (C), Is Short (C) Calls; Jon Najarian Owns (GS), Is Short (GS) Calls; Jon Najarian Owns (JPM), Is Short (JPM) Calls; Jon Najarian Owns (MS), Is Short (MS) Calls; Jon Najarian Owns (TJX), Is Short (TJX) Calls; Jon Najarian Owns (WFC), Is Short (WFC) Calls; Jon Najarian Owns (WMT), Is Short (WMT) Calls; Jon Najarian Owns (AKS) Call Spreads; Jon Najarian Owns (AMSC) Call Spreads; Jon Najarian Owns (CMC) Call Spreads; Jon Najarian Owns (ESRX) Call Spreads; Jon Najarian Owns (FST) Call Spreads; Jon Najarian Owns (JOYG) Call Spreads; Jon Najarian Owns (QCOM) Call Spreads; Jon Najarian Owns (TSL) Call Spreads; Jon Najarian Owns (RMBS)
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