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Buying and holding stocks for the long term isn’t always exciting. It doesn’t require you to wait for an ideal entry and exit point; you just invest in a regular schedule and watch your stocks grow.
But it does require conviction. Because in volatile markets, no stock is immune from sharp price movement. And that can cause investors to doubt their choices.
One way to gain conviction in the stocks you own is by looking at evergreen, defensive sectors. These are the companies that make products and services that consumers can’t do without.
And there’s no better example of that than with medical stocks. This is a broad category that covers pharmaceutical companies, health insurers, medical technology companies, and even software companies that are aiding in the drug discovery process.
Consumers may be able to trade down for certain products, but when it comes to their health insurance and their prescriptions, they typically won’t compromise. This gives these companies a stable revenue base.
However, investors want more than just stability. They also want growth.
As technology races to keep up with increasing demand from an aging U.S. population, many medical companies are set up for long-term growth. That growth will continue even as investors rotate out of other overvalued sectors in anticipation of interest rate cuts.
Most of the medical stocks on this list are large-cap names that are part of many mutual funds and exchange-traded funds (ETFs). But if you have an appetite for risk and a timeframe that will allow for future growth, there are a couple of small-cap stocks to consider as well, and the common theme is how they’re using AI.
View the 7 Mighty Medical Stocks That Will Keep Getting Stronger
Matthew Paulson
MarketBeat.com
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