Healthcare is an attractive field for investment. Demographic trends will inevitably lead to increased healthcare spending, which should benefit companies in this sector. The most promising prospects within healthcare are pharmaceutical and biotechnology firms with large drig pipelines, research and marketing budgets, and providers of medical equipment that is used in specialized clinical procedures instead of general use. It is not unusual to find attractive healthcare investments in the other industries, but more examination is needed to determine if a competitive edge exists to protect recent high returns on capital.
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