The #1 “Reopen” Trade… and It’s Not Even Close

The #1 “Reopen” Trade… and It’s Not Even Close

Where Innovation Meets Investing

You’re seeing them pop up more and more…

Headlines teasing the top stocks to make a killing off America’s great “reopening”…

Notice what they all have in common?

They’re all centered around today’s most popular ideas...

Buy “cheap” cruise line stocks… airline stocks… and entertainment stocks… and make big money as the world starts to get back to normal.

Folks, this is a dangerous game.

Sure, these bombed-out stocks could deliver some short-term gains. You might eke out 10%... maybe 20% in a couple of months once people start booking vacations and going to the movies again.

But you’re more likely to LOSE money in the long run by betting on these today. Simply put, these aren’t good investments. And as I’ve written before… hunting for bargains in crappy stocks is a loser’s game.

  • Fortunately, there’s a much better way to profit off the reopening of America.

It’s one you’re not reading about in the mainstream media. But it can make you big, steady profits for years to come…

In fact, my research shows this specific group of stocks is one of the best moneymaking opportunities available today.

And unlike cruise lines, airlines, and movie theater stocks… this industry is becoming more important than ever…

  • I’m talking about medical device stocks…

Medical device companies make products that help diagnose, prevent, and cure diseases. They sell everything from artificial joints to robotic surgery systems.

If you’ve been reading RiskHedge, you know medical device stocks are one of my favorite long-term bets. And there are plenty of reasons why…

For starters, medical device companies are basically tech companies dressed up as healthcare companies. Like “regular” tech companies, many medical device companies enjoy rapid growth.

The industry also has a massive demographics tailwind working in its favor.

You see, it’s no secret the US population is aging. By 2060, the number of Americans 65 and older will double to nearly 100 million people. And the percentage of Americans in this age group will jump from 16% to 23%.

Of course, this isn’t just happening stateside. Populations across the developed countries are getting up there in age as well.

In short, there’s a ton to like about these companies. So, it shouldn’t come as a surprise that they’ve been huge moneymakers. 

  • Medical device stocks have been top performers for years…

The iShares U.S. Medical Devices ETF (IHI), which invests in a basket of medical device stocks, has climbed 190% over the past five years.

Source: StockCharts

And that includes a 23% rally over the past year. The S&P 500 has only risen 14% over the same time frame.

And medical device stocks should deliver much bigger returns in 2021 for a simple reason.

  • You see, many “elective” medical procedures were put on hold due to COVID…

A recent study across 60 countries found nearly 29 million elective medical operations were postponed or canceled in just the first 12 weeks of the COVID surge.

And it’s important to understand we’re not just talking about cosmetic surgeries or other non-urgent procedures…

Of the 29 million postponed or canceled procedures, 2.3 million were related to cancer treatment or diagnosis. Other procedures include heart transplants and spinal surgeries.

And yet, millions of medical procedures were unable to be performed due to COVID.

As you can imagine, this has a big impact on many medical device companies. I know because I’ve analyzed dozens of these companies. And I can’t tell you how many CEOs of medical device companies cited COVID as the cause for sales declines.

Of course, most of these medical procedures must be performed eventually. If they aren’t, people will suffer through pain or possibly die.

In other words, there’s a massive backlog of elective procedures that will be performed in the coming months, especially with the vaccines being administered. And that spells huge pent-up demand for certain medical device companies.  

  • I believe this is one of today’s most overlooked opportunities…

Hardly anyone’s talking about this.

And I get it. Medical device stocks aren’t as sexy as disruptive technologies like electric vehicles or hydrogen energy.

But that’s no reason to ignore them.

I expect we’ll see a huge surge in elective medical procedures in the months ahead. And that should lead to huge revenue spikes for many medical device companies.

I encourage you to take a strong look at medical device stocks if you haven’t yet.

You can easily take advantage of this opportunity buying IHI, which offers broad exposure to the industry.  

Justin Spittler
Chief Trader, RiskHedge

P.S. IHI invests mostly in large medical device stocks. But if you’re trying to make the most of this opportunity, I recommend focusing on the smaller names.

In fact, in my IPO Insider advisory, I just recommended two explosive medical device stocks that are on the launchpad. Both charts tell me they’re ready for takeoff… and NOW’s the time to buy.

Best part? They’re both still flying under the radar today. My research shows they’re still “hated” by many indicators, which spells big gains for us.

You can access the names of these stocks, and learn more about my proven “hated stock” strategy here. Just act soon if you’re interested… with their current setups, explosive gains could be coming any day now.

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