What to Expect From Healthcare in 2009

Healthcare has been the safest play the past year and may continue to be the safest for the next several years. The elderly are the single largest group in America right now. With all the baby boomers reaching retirement, the meds will have to start flowing. You really have to keep a couple hundred thousand dollars on the side just to make sure you can cover all your medical expenses once you retire. Not only that, people are always going to be sick and will keep buying medication. If you only bought one stock, it should be in this sector.

If you want a growth stock, biotechnology is where you need to be. Biotech is a risk however as their products are not assured to pass through the FDA. But with cancer replacing heart disease as the number one killer in America over the next few years, you can expect these companies will be there trying to fight it. Amgen(AMGN) and Genentech(DNA) are two of the largest firms that are good buys on pullbacks. No matter which company you want to invest in, keep up with the patents set to expire and any new drug in the making. If any company is ever allowed to do research using stem cells, buy that stock!

The normal drug industry also looks good as medications don't stop getting bought in a downturn. The trick in this industry is to find companies coming out with drugs that no one else has yet. Gilead Sciences(GILD) has my utmost approval as they have been living off HIV drugs that were the first of its kind to hit Europe. Celgene(CELG) is another that hasn't stopped soaring. They have one drug set to go global and another one with a much anticipated approval from the FDA. This industry is another one of the best.

The medical supplies industry has a lot of great companies. The best just may be Johnson & Johnson(JNJ). JNJ has a highly diversified healthcare product line, a generous dividend, and ever increasing earnings that rarely ever disappoint. And where better to buy these products than CVS Caremark(CVS). CVS beats out competition in almost every aspect.

There are a few good companies that were not mentioned here. As always do your own homework and research before you just accept anyone's thoughts and ideas. This is easily the best sector out there and will be for year's to come with so many growth opportunities. Just make sure you know where drugs stand with the FDA and how much competition they will have starting off. You won't have to look hard to find a growing company, but you will have to keep a close eye on competition and international markets.