From Teeka Tiwari, editor, Mega Trends Investing: Last week, presidential hopeful Hillary Clinton announced a multipronged plan to curb prescription drug costs. If elected, she’s looking to cap monthly drug costs for consumers at $250.
A biotech and pharma stock selloff has intensified since her announcement. It’s sort of a déjà vu…
I remember, in 1991, she vowed to roll out a national health care system. People feared it would be the end of the health care/drug boom. Stocks in the sector got rocked lower.
It was a terrific buying opportunity.
That’s because making a campaign promise and having the political clout to turn that promise into reality are two different things.
That’s what Clinton found out in the early ’90s when she tried to push her agenda through… She ran smack into a Congress that rejected her ideas.
Once the threat was lifted, drug and health care stocks soared. Even if Clinton is elected as our next president, it’s a good bet her plan never sees the light of day. The Republican-controlled House will never pass her legislation.
Just like in 1991, we have another terrific buying opportunity in the drug and health care sector.
Recent market weakness means some great names in the Mega Trends portfolio are on sale. I urge you to buy these stocks if you don’t already own them. When the market recovers, they’ll bounce back very quickly.
Reeves’ Note: Right now, you can take advantage of the scare in pharma and buy one of Teeka’s recommended stocks at less than 13 times 2016’s earnings estimates. This stock normally trades at 17 times earnings. When it normalizes, you’ll make about 30% in profits. Current Mega Trends subscribers can review this pick, right here.