There are good reasons to invest a few bucks in one of the most promising and undervalued sectors in the stock market right now: small cap medical technology.
Here are 3 reasons, why you can expect high returns in the months ahead:
1. Healthcare is recession-resistant
It doesn’t matter in which condition the current economy is. Whether it is expanding or contracting, inflation is high or low, or interest rates are rising or falling, people who need medical attention will seek and get it. The demand for medical services is largely inelastic.
2. Innovation is constant
New medical devices are protecting, extending and saving lives. Most are patent protected. This stops competition, secures profit margins, and drives strong growth.
3. A perfect contrarian investment
Technology stocks have been hit hard this year. Small cap tech stocks, including those in the medical field where hit hardest and are simply undervalued. They are bargains and therein lies a huge profit opportunity.
Sven Franssen