PROSHARES TR (RXL)

What the heck, I'll lay down my bet that the health sector is going to levatate, whatever else happens in the economy and financial system, especially in comparision to the alternatives.





First, the demographic argument: increased affluence worldwide will explode the market for basic medical supplies and equipment as developing counties spend their increasing affluence on raising medical standards and increasing access to sophisticated equipment.





Also, medical supplies and equipment are a quintessential expendable: often use-once and throw-away.





Also, the richest nations are the "oldest" nations. As we age, we enter a stage of increasing physiological decline that ends in a pretty expensive send-off, medically speaking. Baby boomers will use medical services and products to an expodentially increasing degree in the coming decades.





This will not be lost on investors who will bid up those companies' stocks, especially those that increasingly appear to situated where they can most profit from an aging, affluent population. Why pick between the potential winners when you can watch the whole sector (EFT) fight it out for the bigger and bigger pie, on a leveraged (2X) basis?





Compared to the SP500, sicker older folk stop or slow their buying of vacations, new cars, houses, etc, and deal with their declining health. Less spending on everything else, along with more spending on health, gives this sector a comparatively rosey future.





Internationally, the USA has a strong case to make abroad for supplying high quality medical products. The sector's "moat" is the relative inefficiency of re-inventing some very high quality, high-tech medical products. But also, internationally speaking, because the Federal Reserve has decided to take the road forward over lower interest rates, which has some attraction if you invest in US stocks, because the increasingly weakened dollar makes our best goods and services more competative against other highly develped nations' company's medical products on a COST basis. And repatriated profits are denominated in relatively more valuable currencies.





Finally, this puppy has been killed lately, I think because cash has followed the hype. But I can see the argument that after commodities lose their luster as the next buble burts, that medical is, fundamentally speaking, a perfectly defendable candidate for the next big bubble...