Once every few years, a market sector explodes to life…
And, in turn, creates fortunes for those who get in early enough.
The dot.com boom of the 1990s, the mining boom of the early 2000s or the China food boom of recent years, are just three trends that made millions for investors.
If you’d seen these trends coming and got into the right companies, you could have retired from the profits (or bought a mega yacht, or whatever else you want to do with extreme riches).
Amazon.com, Inc [NASDAQ:AMZN] is up an incredible 49,000%-plus over the last 20 years. A $5,000 investment in 1997 would be worth over $2.5 million today.
Then in 2008, there was the story of how Malaysian investor KC Wong turned a $1 million investment in the fledgling Fortescue Metals Group Ltd [ASX:FMG] in 2003, into a stunning $1.2 billion five years later.
In more recent years, Treasury Wines Estates Ltd [ASX:TWE] has risen from $3 per share to over $18 per share as the Chinese middle class got a taste for our best wines.
Six times your money in just four years? I’ll drink to that!
Here’s the thing…
All these profits were on the table for anyone who could see the big trends coming and had some spare cash at hand to lay down a few bets.
Right now, I think another theme is bubbling away. And it could be set for a roaring 2020.
You need to check it out…
The health-tech explosion
When three of the biggest names in finance start sniffing around a sector, you know something is up.
And that’s why the JP Morgan, Warren Buffett and Amazon healthcare joint venture — Haven — is a clear sign big money smells profits ahead for the healthcare industry.
The fact is, it’s an industry desperately in need of a shake-up.
Patient costs are rising, the world’s populations are growing older and government finances aren’t equipped to deal with the rising costs that are coming.
The answer to this big problem is going to come from technology…
Research company, Accenture estimates that artificial intelligence (AI) applications could save health budgets a whopping $150 billion per year in the US.
That’s a pretty big saving for the $2.8 trillion market.
According to Accenture, these are the most valuable areas right now:
Like I said, big names are moving in including Apple, Google and Uber, too.
But I think certain small companies could be where the big gains are found.
As an example, here’s three small healthcare disruptor stocks on my radar right now…
Three stocks to ride the Health-Tech trend in 2020
- Simulations Plus, Inc [NASDAQ:SLP] — This is a US based company that works with other biotech research companies. They create simulated models to fast-track the research process for their clients. In the era of big data, we think this is an especially exciting niche SLP are in.
- ShareRoot Ltd [ASX:SRO] — This company is an Australian microcap (so very small and very risky) stock that is in the midst of an exciting transition. The new CEO Michelle Gallaher is positioning ShareRoot — to be renamed Opyl — as a link between big data nous and biotech marketing. It’s early days here, but should be a good one to watch. It’s a tiny company, so if it can prove its new model, the gains could be exciting. But you could lose the lot easily here, too.
- MedAdvisor Ltd [ASX:MDR] — Another Aussie small stock, but this one is in the process of going global. They’ve just raised money from some big US partners and are set to export their business model — a kind of Uber for medication that links up pharmacists, GOPs and patients — to the world. By using a special phone app, patients more easily access prescriptions, and pharmacists can better generate loyalty and manage patients. Anyway, they’re getting runs on the board with this interesting new idea.
These are some ideas you can look at. But there are many more.
Solve the clues before the market and the rewards can be great. Manage your risks. Have fun!
Editor, Money Morning
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