The biggest American gold rush you’re probably missing

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Today’s issue in preview:

• The biggest American gold rush you’re probably missing

• America’s aging population is a capital gain machine for investors

• How to invest in booming Florida through the stock market

• Learn our Top Themes to buy now

America’s aging population is a capital gain machine for investors

Credit: Drazen Zigic

It turns out being bullish on the heart health business was a good idea.

On November 4, cardiovascular health giant Edwards Lifesciences (EW) reported strong third-quarter earnings and raised its full-year revenue guidance. Revenue increased 10.5% to $1.72 billion, while adjusted earnings per share jumped 19%. Sales of its fast-growing minimally invasive mitral and tricuspid valve treatments surged 44%.

Edwards also reported encouraging clinical trial results suggesting its treatments could eventually reach a much larger patient population. Recent FDA approvals and a wave of analyst upgrades added to the positive news. The stock has soared 24% over the past month and just reached a new one-year high.

Money & Megatrends readers in good standing are not surprised to see the likes of Edwards on the stock market leaderboard.

Back in July, we published a bullish research note on the cardiac health industry. At the time, we stated this “sub theme” was poised to be one of the most lucrative facets of the Boomer healthcare megatrend… which – as we noted on October 21 – has turned into a modern-day gold rush.

More than 10,000 Americans reach retirement age every day. 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 enormous Baby Boom generation entering the phase of life where 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 continue to do so for the next decade.

Heart disease is the leading cause of death in America. In 2023, 915,973 Americans died from cardiovascular disease, including heart disease, stroke, hypertension, and heart failure.

Nearly half of U.S. adults have high blood pressure. About 47% of American adults have hypertension, the leading risk factor for heart attack, stroke, heart failure, and kidney disease.

U.S. cardiovascular healthcare spending is expected to soar. The American Heart Association projects total cardiovascular healthcare costs will more than triple to approximately $1.5 trillion annually by 2050.

A large industry with a high likelihood of continued growth is sure to offer significant business and investment opportunities. The cardiovascular health industry includes medical device makers, cardiology clinics, drug makers, diagnostic companies, and surgical supply companies.

Edwards is a giant of this industry. It is the world’s largest manufacturer of transcatheter aortic valves (TAVR).

These devices treat aortic stenosis, a common and potentially deadly heart condition in which the valve controlling blood flow from the heart becomes narrowed. TAVR allows doctors to replace the damaged valve through a catheter, typically inserted through an artery in the leg, without performing open-heart surgery.

The procedure has revolutionized cardiac care, particularly for older patients who face greater surgical risks. With an aging population and hundreds of thousands of procedures performed worldwide each year, TAVR has become a widely adopted, multibillion-dollar treatment category

As detailed above, business is booming… and so is the stock price.

Unfortunately, the number of people who need cardiovascular treatment is already enormous, and it’s likely to grow substantially in the decades ahead. This is a structural, long-term reality baked into America’s demographics.

Every day, more Americans enter the age groups where the risks of heart disease, arterial disease, and atrial fibrillation rise dramatically.

Edwards’ new high is confirmation of how the companies that provide the equipment, devices, supplies, and services needed to treat these conditions are positioned to benefit from this powerful, predictable, multi-decade megatrend.

The biggest American gold rush you’re probably missing

Credit: AndreyPopov

Cardiology isn’t the only lucrative facet of the Boomer healthcare gold rush.

This week’s trading confirmed that, as we expected, the Healthcare Diagnostics industry is a market-leading theme that consistently rewards shareholders.

Yesterday, leading Healthcare Diagnostics firms Quest Diagnostics (DGX), Labcorp (LH), Adaptive Biotechnologies (ADPT), and Fulgent Genetics (FLGT) reached new one-year highs. In the case of Quest and Labcorp, they were also new all-time highs.

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 (see above).

Over the past 20 years, the healthcare diagnostics field has undergone a huge 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.

Having a doctor or medical team that fully leverages AI is like having 1,000 super geniuses working day and night on your diagnosis and treatment.

The result of all this progress 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 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.

An ounce of prevention is worth a pound of cure… and it can help generate large stock returns. Trade accordingly!

How to invest in booming Florida through the stock market

Credit: Jim Still-Pepper

Last week’s election produced plenty of winners and losers. But one of the most interesting winners isn’t a politician, a political party, or even an industry. It was an entire state.

Over the past week, business owners and investors have expressed concerns that newly elected Democrats will pursue high-tax, big government, and anti-business policies.

Whether those concerns become reality remains to be seen.

But there’s enough concern over those trends to work heavily in favor of Florida’s population and business growth… and in favor of The St. Joe Company (JOE) by default.

St. Joe is a $4.1 billion market cap real estate developer that owns more than 150,000 acres of land, primarily in the Florida Panhandle. As the owner of that land, it develops and operates residential communities, commercial buildings, hotels, and golf courses.

In a favorable research note on JOE we published back in January, we highlighted how the state of Florida is benefiting from trends toward socialism in New York and high taxes in California and Illinois.

The more these state governments pursue high taxes and bloated government budgets, the more likely their residents are to flee and move to Florida, which has no state income tax and is considered a very business-friendly state. Many people have already made this move in the last five years. According to the U.S. Census, Florida’s population has grown by at least 1.87 million people since 2020.

St. Joe also has a “demographics kicker” working in its favor. It benefits from members of the enormous Baby Boom generation wanting to retire somewhere warm.

As you can see in the chart below, it’s a bull market in JOE – and, by extension, Florida.

Last week’s big Democratic sweep put even more pep in this bull market’s step by raising concerns that traditional red-state strongholds like Texas could be shifting toward blue. This boost powered JOE out of a long sideways consolidation and into fresh new highs.

If you believe more Americans will tire of high taxes, heavy regulation, and nanny state government, JOE is one way to invest in their search for greener pastures.

Market Notes

• AI giant Nvidia (NVDA) reached a new six-month low today in the wake of the Jensen Huang/Chinese spy scandal.

• Quick-serve healthy-ish restaurant chain Sweetgreen (SG) reached a new one-year high today.

• The weak crypto market drove cryptocurrency brokerage giant Coinbase (COIN) to a new one-year low today.

• The beaten-down iShares MSCI India ETF (INDA) reached a new three-month high today.

Regards,

Brian Hunt
Editor, Money & Megatrends

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