by winston » Thu Mar 19, 2015 8:59 pm
THIS HUGE, STEADY TREND ISN'T SLOWING DOWN
Today's chart looks at one of the steadiest uptrends in the stock market...
Regular readers know we're proponents of investing in "picks-and-shovels" companies to profit from sector and commodity booms. Picks-and-shovels providers don't bet the company on one project... They sell vital goods and services to an industry (read our educational interview about it here).
As we've covered many times, the health care industry is booming right now. The Baby Boomer generation is increasing its health care consumption. Plus, Obamacare is boosting demand. This is great for investment funds like the SPDR S&P Health Care Services Fund (XHS). It holds a diversified basket of picks-and-shovels providers to the health care industry.
As you can see below, business is booming. XHS is up 100% in the past three years. What's even more remarkable about the trend in XHS is its low level of volatility. Despite the big rise, XHS has been 20% less volatile than the overall stock market over the past year. It's one of the steadiest trends in the market today.
Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"