Jack -- I concur. The boomers are like a thundering herd that shake up everything in their path as they move through life. Just think how everywhere you go to eat or shop is now more 'family friendly' to accomodate boomer parents. Big change from just a few years ago. And the stampede in the market, as just about everybody knows, is another reflection of aging boomers and an uncertain SS system. (I've read several articles speculating that a penchant for instant gratification might have something to do with the recent runup. Question: how will they react when the gratification is no longer so instantaneous? Maturely we all...hope! )
One way or another, they will definitely have a big impact on the fortunes of many companies that provide health care services or drugs. I think there a lot of uncertainty about who will be the winners and losers, though, during this time of change,. And as we all know, the market isn't too keen on uncertainty. For my part, this aversion to uncertainty creates value in certain stocks such as PMSI. We know the demand for their services is likely to grow (barring any unforeseen medical breakthroughs!). We know they now dominate their market. And, it appears probable their dominance will grow rather than wane. We (I) believe this because the management has attained their position through smart decisions and good business practices and will likely continue to do so.
For all these reasons and more, I'm not afraid of hanging on, even as the big caps go marching by. Especially when you consider the risk-reward ratio, PMSI has very little potential downside and lots of upside. I love stocks like this. All they take is a little courage and a healthy dose of patience. In fact, I'm mulling over buying some more, but I'm a little overweighted on this one as it is, so I may look to diversify instead.
Mark |
