American Consequences - September 2018

One sector has a history of soaring thousands of percent in market “Melt Ups” like we’re having now. Heck, it’s soared 15,378% (with leverage) in the past.

By Dr. Steve Sjuggerud

No, that’s not a typo... That’s what’s possible in the health care sector when things really get going. To have any chance at gains like that, you need to focus on the long-term trend and use leverage to juice your profits. The chart below shows what I mean. It shows the massive boom in health care stocks from the early 1980s to the late 1990s. Without leverage, the health care sector led to a massive 1,451%. Check it out:

That’s the long-term trend. Not too bad... But nowhere near a 15,000% move. That’s where the leverage comes in. Investing in this exact same sector using leverage can do better... a lot better. It takes guts. Spotting a big trend... betting big, with leverage... and then hanging on is tough. But it works. In this case, buying the health care sector with leverage could have meant 10 times the return during that huge boom.

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HEALTH CARE SECTOR

It takes guts. Spotting a big trend... betting big, with leverage... and then hanging

on is tough. But it works.

American Consequences 55

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