Over the years, we have witnessed several changes in the investment sectors. IT was the chosen sector until a few years ago and then it was replaced by semi conductors and electronics. Now cleantech is seen rising out of nowhere. But one sector that has been consistently sought after by venture capitalists is health care.
Dow Jones VentureOne and Ernst & Young recently quoted in a survey that more venture capitalists want to invest in health care as it is safer and the returns are better.
So health care investing is on an all time high. There has been a whopping 27 percent rise in investments in biopharmaceutical and medical device companies as compared to January 1st 2006.
Today if you analyze the portfolios of the top venture capitalists in the US, you will see that there are many health care companies in them. There is a 14 percent growth in this. Compare this to the decline in the number of IT companies and you will know what we are talking about.
Venture capital research analysts suggest that this is a trend that will stay. The Initial Public Offers for health care companies are much better when compared to IT companies. Apart from that, most baby boomers are getting older now. So they feel that health care investing is a viable option that will give them better results when they need it most. The exit opportunities in the health care sector are also better.
For the individual investor
The above mentioned statistics also apply to individual investors. If you are an investor then this is the best time to get some quality health care stocks into your portfolio. Experts are suggesting a health care boom in the years to come and you can take full advantage of it if you start now. So start researching now and handpick some of the best health care stocks in the market.