What is the stock Justin is talking about here?
“Keep it simple, stupid.”
A mentor of mine told me this early in my career.
At the time, I thought it was a bit harsh. But the words stuck with me.
They helped make me the investor I am today. Unlike many investors, I try not to overcomplicate my investing.
One way I keep things simple is by concentrating most of my money on “megatrends.”
Megatrends don’t play out over months or a few years…
They play out over many years… sometimes decades.
The rise of the internet, the “digitization” of money, and the explosive growth in social media are some of the biggest megatrends of the last decade.
Savvy investors who got in on these megatrends early made an absolute killing.
Online retailer Amazon (AMZN) has skyrocketed more than 12,000% since going public in 1997. Bitcoin, the world’s most popular cryptocurrency, has soared more than 2,000% since the start of 2015. And social media giant Facebook (FB) has surged 400% since its IPO in 2012.
What makes these trends special is that they powered ahead despite financial crises and recessions.
That’s why betting on megatrends can be so lucrative. They’re unstoppable. It doesn’t matter what’s happening with the economy or financial markets.
Today, I’m going to tell you about another megatrend that’s playing out before our very eyes.
I’ll even tell you about my #1 way to cash in on this megatrend…
But take a look at this chart first.
It compares the performance of the iShares U.S. Medical Devices ETF (IHI) with the S&P 500.
IHI invests in a basket of medical devices stocks. These companies make products that help diagnose, prevent, and cure diseases. They sell everything from artificial joints to robotic surgery systems.
When the line on this chart is rising, it means medical device stocks are outperforming the broad market. When it’s falling, it means they’re underperforming.
Medical device stocks have been crushing the market since 2013. During that stretch, IHI surged more than 258%. That’s nearly triple the S&P 500’s return during that time.
That’s staggering outperformance. But this trend is unlikely to reverse anytime soon.
The medical device industry has a huge tailwind working in its favor.
It’s no secret that America’s getting older.
By 2060, the number of Americans 65 and older will double to nearly 100 million people.
This isn’t just playing out in the United States. Populations in many large Asian and European countries are also aging. In fact, 26% of the population in Japan is already over the age of 65. In Italy, Germany, and Portugal, that figure tops 20%.
This is great news for the entire medical device industry. Older people account for the vast majority of medical expenses. In the United States, people age 55 and over account for 56% of all healthcare spending… despite making up just 29% of the population.
You can see why investing in medical devices for the long haul is a “no-brainer”…
And most investors would do just fine by owning IHI.
But there’s a special group of medical device stocks that will deliver even more explosive gains in the coming years.
I’m talking about the companies that are tackling the diabetes crisis.
Diabetes is a disease that occurs when your blood glucose (or blood “sugar”) is too high. It affects 463 million adults (1 in 11) worldwide. Last year, an estimated 4.2 million deaths were caused by diabetes.
It’s a full-blown crisis. Thankfully, disruptive companies are tackling this crisis head on… helping people with diabetes live longer, healthier lives.
Dexcom, Inc. (DXCM) is one of those companies. Dexcom makes glucose monitoring systems. These devices help people living with diabetes monitor their glucose levels.
You can see below that its stock is skyrocketing. It’s jumped 131% since last April… and over 500% since October 2017. During that stretch, Dexcom outperformed IHI by more than 12X.
Insulet Corporation (PODD) is another red-hot “diabetes stock.”
It sells insulin pumps for people living with diabetes. PODD has spiked 93% since last April… and an incredible 479% since the start of 2017. Like Dexcom, PODD also outpaced IHI by a wide margin during that explosive run.
Tandem Diabetes Care, Inc. (TNDM) is another high-flying example. Like Insulet, Tandem makes insulin pumps.
Its share price has surged 2,727% since February 2018. That’s enough to turn every $10,000 invested into over $280,000! During that run, Tandem outperformed IHI by nearly 400X!
These types of companies should continue to soar in the coming years as they tackle one of the country’s biggest epidemics.