HOW TO INVEST IN HEALTH CARE
Investing in the health care sector and actually making money and beating the overall sector is a much more daunting task than most would believe. Year to date the SPDR Health Care ETF (XLV) is up 9% versus a gain of 17% for the S&P 500. Within the sector the difference between the winners and losers is even more dramatic with insurance provider Cigna (CI) up 79%, Allergan (AGN) the maker of breast implants and Botox up 44%, and large biotech firm Genzyme (GENZ) down 21%. Then there are the Health Care IT names such as Cerner (CERN) up 101% and Quality Systems (QSII) up 41%. At the end of the day you want to own the companies with the least amount of risk to any big government changes and companies you feel have a product/technology that will be in demand in the future that will lead to high revenue growth.
One of those names was taken over this morning by a private equity firm - IMS Health (RX). The company which provides software that tracks sales and research for drug companies was purchased for $5 billion, a premium of 30% to yesterday’s closing price. The combination of software and health care has a very bright future and we have a list for our clients and already have some money in the sector. For more info on the sector please contact PFG for our products and services: 1-877-383-7366 or info@pennfinancialgroup.com. | 
