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InvestorPlace.com Editor Jeff Reeves on the stocks that will potentially see stable, long-term growth despite any downturns in the markets.
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So if you think the market is going down a lot of people out there who do then you may want to consider what one strategist is calling crash proof stocks.
Crash -- what makes them crash proof they all focus on one thing that's.
That is possibly certain in life getting older and Jefferies is the editor of investor flights dot com and Jeff after your stellar segment that you did on.
Up fixing for one -- and jettisoning certain things that would be sure to bring it down let's get to these things that -- ideas that you have about crash perfect can you really crashed per.
Well you know I don't think there's any sure things in the markets and I'd and I don't think that the market's gonna go down a few select -- 7000 but.
The last -- is for the break -- -- -- -- I completely agree with him it's it's nice to kind of -- a couple -- now the markets looking better but.
Don't put your guard down and investors cannot put the guards found at the last couple years here -- gonna get cleaned so.
-- I think it's important to think about how to be secular demographic growth place you can get and that's one of the reasons that I really like health care is because.
The numbers it is there any forty million Americans are over age 6513%.
Of the population both raw number and percentage wise the largest in history history.
Boomers -- only got pushed -- higher so why not put the demographic trend and we're gonna get bigger pie and I think a lot of companies can profit from that OK beef.
-- we get to the pharmaceuticals which a lot of people think of automatically in that regard let's talk about Cerner.
Symbols CEO -- hand it it digital lies his records it does a lot of computer stuff why do you like them in particular.
Yeah I mean -- is actually is much of a tax -- is -- is -- health care doctor and it does software systems for hospitals and clinics patient management to digitize records I mean.
Think about it what were on the -- the iPad three now it's kind of absurd at a front -- Brett nurse practitioners of charts and pencil and -- and I mean yes sky antiquated -- Medical records are getting more innovative they're getting more easy for for patients to take around.
Digitally for doctors to make record.
Our computers and Cerner is -- -- the forefront of that they're not point 5% year to date 50% in the last year.
Earnings and profits -- earnings revenue continue to grow at about 20% 30% annual clip I mean this is one of those secular growth stories.
Health care has demanded the technology is only going to progress means owners -- the right place right time.
I think that's really good long term play for people got -- stock crash proof for say there's always a risk but I think people get agree there's a lot of things in favor of the stock just or.
Basically the way things are OK so continuing in the same vein if you were to pick a pharmaceutical the pharma that you pick is Abbott labs now.
We cover the stock a lot because it's got a terrific yields a terrific did -- is that.
Right help what is it now exactly.
Three and a half percent three it is right on your eyes -- so let's get to what else you like about this company what's and -- -- want doesn't have some expirations coming.
-- actually what others -- I like out of -- compared to some of the other big pharma stocks.
When you look at the long term it's actually up since 2007 down only a little bit less than the rest of the market.
You're merger visors are down by double digits and I think that's largely because -- biggest drug Q -- it's it diabetic medication doesn't go off patent -- 2016 with a lot more lead time that some of these other stocks.
It also -- that it infant nutrition business hadn't -- else what -- feet by six months old so it's.
A little bit more consumer oriented little more stable revenue stream their helps them feed the dividend.
And then beyond that they've had some drugs that kind of come out with very small patient pools but they're expensive drugs -- -- -- -- plays.
But I think it's a good thing for drug companies -- -- not everybody can -- a Lipitor every year.
So I mean haven't got a lot of things going on right now and on a basic level like you said three and a half percent dividend it p.s of about eleven right now so I think there's a lot going on.
-- about it among all of a farm I think you know one of the problems with both -- and Cerner is -- today -- -- at their twelve month highs it's always a little risky to -- at the high.
Not so with committee and it's it's it's not low by any chance but it's still -- still has some room to grow committee and it is a pharmaceutical but it also produced Lotta medical devices.
Yeah that's actually one of the Big Three twilight I didian it its home health business actually it is a little bit more attractive to me than anything -- -- -- that he has.
Again the demographic shift that we have of people getting older they're gonna need more products whether it's the little trays or syringes or what they eat whatever people need for their medications.
The -- and -- home health and it makes sense for insurers to send people home to keep costs are absolutely patients families -- -- always -- it better and they don't like to -- -- loved ones off to a home.
Yet you're everybody wins in -- one of these markets that it's just gonna continue to grow I mean people are going to need this product they're going to have a demand for and Canadian has right there there is it was spun off from -- so they could focus in 2007 -- -- from Tyco international's they could focus -- business.
I'm elements like home health care in the growth has been there again it hasn't really gone like gangbusters in the last year but year to date is actually outperform the market.
And I really like the stock again because its dividend payout ratio dividend is it really are off the charts right now it's less than 2%.
But its payout ratio was less than 20% of its profits right now I think it has a lot of room to increase its dividend over time again you're going to demographic play -- years not months.
Over time you're gonna get a better dividend you're gonna get better sales from Canadian.
Along let's put all of these picks up on our FaceBook page which is FaceBook dot com slash after the bell Jeff great stuff thank you thank you Jeff I would just thank you -- of investor place dot com.
