The U.S. government wants you to make money in these stocks. We say take the hint.

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Today’s issue in preview:

• The U.S. government wants you to make money in these stocks. We say take the hint.

• The business of living longer is booming. How to invest

• The roaring bull market most people are missing

• Learn our Top Themes to buy now

The roaring bull market most people are missing

Credit: gorodenkoff

“An ounce of prevention is worth a pound of cure.”

This famous proverb can save your life through early detection and treatment of diseases and disorders.

It’s also an idea that can make you a lot of money over the coming years.

It’s the idea powering the Healthcare Diagnostics boom… and many strong stock trends you should know about.

On June 12, we detailed how the Healthcare Diagnostics theme will likely prove to be one of the most lucrative ways to invest in the Boomer health care megatrend.

The giant Baby Boomer demographic is entering the phase of life when healthcare spending skyrockets. For many boomers, a typical month involves going to see at least one doctor to have something looked at, removed, or treated. This means many healthcare businesses are experiencing huge demand now – and will for at least the next decade.

This is very bullish for the diagnostics business.

Over the past 20 years, the healthcare diagnostics field has undergone a remarkable transformation. Doctors can now detect diseases earlier, identify them more precisely, and select treatments more effectively than ever before.

Advances in genetic sequencing, molecular diagnostics, medical imaging, and laboratory automation have dramatically expanded what doctors can see and measure inside the human body.

The cost of sequencing a human genome has plunged from millions of dollars to hundreds. Modern blood tests can identify genetic mutations, detect tiny amounts of disease-related material, and reveal biological abnormalities that were once invisible. Advances in MRI, CT scanning, and ultrasound have made tests faster, less invasive, and more informative.

Artificial intelligence is now accelerating this progress by helping physicians interpret scans, analyze laboratory results, and recognize subtle disease patterns.

The result is a healthcare system increasingly capable of detecting problems before they become life-threatening – and delivering more personalized, targeted treatments.

Healthcare diagnostics is already a massive global industry, and spending is expected to grow steadily as populations age, chronic diseases become more prevalent, and doctors increasingly rely on sophisticated testing to guide treatment. Demand is especially strong for genetic testing, molecular diagnostics, cancer screening, and advanced medical imaging.

Grand View Research estimates that the global clinical diagnostics market will reach $130 billion in 2026 and $169 billion by 2030, representing approximately 6.6% annual growth

The diagnostics market isn’t just growing. It’s being rebuilt from the ground up around a new clinical philosophy powered by blazing technological progress: detect early, intervene early, prevent the crisis entirely. This industry’s potential to drive growth, deliver societal benefits, and produce big stock market winners is massive.

This week, the market has enthusiastically confirmed the validity of this bullish position. The diagnostics firms leading the market and reaching new highs include:

Caris Life Sciences (CAI), a $9.2 billion developer of advanced cancer diagnostics that uses genetic sequencing, molecular profiling, and artificial intelligence to help physicians select personalized cancer treatments. The stock is up 120% since we highlighted it less than three months ago.

GRAIL (GRAL), a $6.3 billion developer of advanced blood tests designed to detect multiple types of cancer early, often before symptoms appear, using DNA sequencing and artificial intelligence. The stock is up 162% since we highlighted it in June.

Natera (NTRA), a $61.8 billion molecular diagnostics company specializing in blood-based genetic testing for prenatal care, cancer monitoring, and organ transplant health. Its technology can detect tiny amounts of disease-related DNA. The stock is up 149% since we highlighted the genomics industry in October 2025.

Quest Diagnostics (DGX), a $27.1 billion operator of one of America’s largest medical laboratory networks, provides blood tests, cancer screenings, genetic testing, and other diagnostic services to patients and healthcare providers.

Labcorp (LH), a $29.2 billion provider of clinical laboratory testing, diagnostic services, and specialized testing for pharmaceutical companies. Its nationwide laboratory network processes millions of patient samples annually.

CareDx (CDNA), a $3.7 billion developer of specialized diagnostic tests that monitor organ transplant recipients, detect signs of organ rejection, and help physicians manage patients following transplantation.

Healthcare is in the middle of a historic revolution. For generations, the system was built to treat the sick. It is now being rebuilt to detect and treat disease before it makes people sick.

The combination of America’s aging population, soaring demand for medical testing, and extraordinary advances in diagnostic technology is creating one of the most powerful and predictable growth trends in healthcare.

Every year, millions of Americans enter the age group where getting some kind of medical test becomes a frequent activity.

At the same time, breakthroughs in genetics, molecular diagnostics, medical imaging, and AI are making those tests more powerful and valuable than ever. The result is a massive, multi-decade investment opportunity. And with diagnostics stocks across the industry reaching new highs, the market is telling us this boom is off and running.

The U.S. government wants you to make money in these stocks. We say take the hint.

Credit: levkr

Eight days ago, a little-known – but very large – company called Reliance Steel & Aluminum (RS) reported outstanding quarterly business results, featuring a 43% increase in revenue and a 113% increase in net income.

Thanks to these outstanding results and a belief that more like them are on the way, the market sent Reliance’s stock price to a new all-time high.

While most people missed this event, it’s a strong indicator that the Made in America megatrend is in full swing… and remains a major investment theme that can make you money.

Reliance is North America’s largest metals processor and distributor, supplying steel, aluminum, copper, titanium, and specialty metals to thousands of industrial customers.

Operating more than 300 locations, Reliance buys raw metals from producers, then cuts, shapes, processes, and delivers them in forms that manufacturers and construction companies can use.

We’re talking things like steel plates for bulldozer manufacturing, I-beams for warehouses, aluminum plates for airplanes, steel tubes for sprinkler systems, rolled steel for industrial tanks, structural beams for ships, and truck trailer frames. Reliance’s customers span aerospace, defense, construction, energy, transportation, and manufacturing.

In other words, Reliance makes a lot of the physical building blocks of America’s industrial economy.

When America builds more factories, power plants, data centers, and industrial equipment, companies like Reliance help supply the enormous quantities of metal required to make it happen. It’s not a glamorous business. It’s just absolutely critical, and America wouldn’t function without it.

All this means that Reliance – like Johnson Controls (JCI) and Emerson Electric (EMR) – is well positioned to benefit from a multi-year boom in U.S. manufacturing capacity expansion… which we call the Made in America megatrend.

Back in January, I made the case for investing in companies that supply critical equipment and services for building and operating today’s high-tech factories.

The bull case here is simple…

President Donald Trump – along with many business and military leaders – believes that the U.S. has outsourced far too much of its industrial capacity to China over the past 25 years. We outsourced significant portions of our semiconductor, appliance, medicine, weapons, and machinery production.

We outsourced the capacity to produce and process critical resources, such as rare earth elements.

The COVID-19 pandemic showed that depending on other countries for critical economic inputs makes the U.S. economy less safe and secure. To put it bluntly, it is very stupid not to produce products critical to national security, like AI semiconductors, within our own borders… especially when we are in an economic and geopolitical “great powers” contest with China.

Trump has staked his legacy and reputation on greatly expanding our industrial base… and he’s working with business leaders to invest trillions to pursue this goal.

Collectively, major American companies such as Apple (AAPL), Nvidia (NVDA), Micron (MU), IBM (IBM), and Eli Lilly (LLY) have announced more than $1.5 trillion in planned U.S. investments spanning advanced manufacturing, new factories, research facilities, and domestic supply chains.

In Money & Megatrends, we’ve capitalized on this “Made in America” megatrend with strong returns in robotics, factory automation, and machine component makers such as Cognex (CGNX), Ouster (OUST), and BC Bearings (RBC).

The Made in America megatrend involves building huge amounts of new AI data centers, high-tech factories, and electrical infrastructure. Reliance’s strong business performance and surging stock price indicate this trend is in full swing. It has much further to run.

The business of living longer is booming. How to invest

Credit: Maca and Naca

On August 25, 1990, Detroit Tigers first baseman Cecil Fielder stepped up to the plate against Oakland Athletics ace pitcher Dave Stewart and hit one of the most spectacular home runs in baseball history.

Fielder’s shot sailed over Tiger Stadium’s left-field upper deck, landed on the roof, and bounced out of the stadium. The blast was estimated to have traveled around 500 feet… one of the longest in MLB history. It left many fans stunned.

I had this sort of “mega home run” image in mind when I read through drug giant Eli Lilly’s (LLY) third-quarter earnings report last night.

Lilly is the world’s largest maker of GLP-1 drugs… and business is booming.

The company’s revenue surged 39%, which is extraordinary for an already large company. Lilly’s remarkable growth was powered by booming demand for its GLP-1 treatments, Mounjaro and Zepbound.

Sales of Mounjaro soared 65% to $10.72 billion, while Zepbound revenue jumped 49% to $5.35 billion. Together, these two blockbuster drugs generated more than $16 billion in quarterly sales, accounting for approximately two-thirds of Lilly’s total revenue.

The company’s international business is booming, with revenue outside the United States jumping 47% to $9.3 billion. Its gross profit margin reached an extraordinary 83.9%, highlighting the tremendous profitability of its products.

In other words, Lilly hit a giant home run.

In response, the market sent LLY stock up 6.5% this morning, which is a very large move for a trillion-dollar-plus company. It added $85 billion to the company’s market cap.

Avid Money & Megatrends readers are not surprised to hear the GLP-1 business is booming.

Back in July, we published a research note on how spending on longevity is rising now and is poised to continue for many years.

Data from the Federal Reserve shows that between 15 million and 20 million baby boomers are millionaires. More than 1 million boomers are worth more than $10 million. As mentioned above, the U.S. population aged 80 and older is projected to roughly double, from 14.7 million in 2025 to 29.4 million by 2045.

This is the largest group of wealthy people in history.

This means there are many motivated, older, wealthy people out there who can spend big on longevity.

One of the leaders of this investment trend – you could even call it the poster child – is Eli Lilly.

Lilly is the world’s largest seller of glucagon-like peptide-1 (GLP-1) medications. GLP-1 drugs mimic a natural gut hormone. They control blood sugar by stimulating insulin release, thereby slowing digestion and reducing appetite.

Over the past 5 years, this class of medications has exploded in popularity. A representative of healthcare giant IQVIA says GLP-1 therapies for weight loss generated $55 billion in sales over the past 12 months, which is up from $2 billion in 2022.

Many people who take GLP-1 drugs see drastic weight loss in less than six months… which should extend their lives. Studies indicate that GLP-1 drugs may also lower cholesterol, slow cancer growth, and reduce the risk of cardiac disease. They are also prescribed to treat sleep apnea, which is a pervasive problem whose effective treatment should extend many lives.

In other words, GLP-1s are believed to be the closest thing to “miracle longevity drugs” that we currently have.

As a result, Eli Lilly’s sales are skyrocketing.

The Eli Lilly story is yet another example of how the “Boomer health care” theme is one of the world’s most impactful and most lucrative business megatrends.

The Baby Boomers are the largest group of rich people in all recorded history. They are entering the phase of life when healthcare spending and longevity skyrocket. For many boomers, a typical month involves going to see at least one doctor to have something looked at, removed, or treated. This means many health care businesses are experiencing huge demand now – and will for at least the next decade. We remain long.

Market Notes

• Our recommendation to get long the biotech sector continues to pay off. Biotech giants Amgen (AMGN) and Gilead Sciences (GILD) reached new all-time highs today.

• Credit card giant Mastercard (MA) reached a new all-time high today. This is a bullish economic signal.

• The AI data center building boom and the Made in America boom continue to work in favor of construction equipment rental giantUnited Rentals (URI). The stock reached a new one-year high today.

• The Boomer health care trend continues to drive healthcare stocks higher. The world’s largest healthcare stock ETF – the Health Care Select Sector SPDR Fund (XLV) – reached a new one-year high today.

• It’s a bull market in high-quality dividend-paying stocks. The Invesco Dividend Achievers ETF (PFM) reached a new all-time high today.

• The bull market in Full Service Restaurants (FSR) continues to signal strong U.S. economic health. Restaurant giant Cracker Barrel Old Country Store (CBRL) surged to a new one-year high today.

Regards,

Brian Hunt
Editor, Money & Megatrends

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