Question

You are a financial planner and your private client has given you $10,000,000 to invest for them. Your task is to study the current economic and geopolitical conditions and to invest his money for the highest return. What sector(s) do you think will provide the greatest return and what stocks or other investments within those sectors would you invest in?

Answer 1

As per research the Pharmaceutical sector is the highest yielding sector. In 2017 the sector witnessed positive development due to willingness of investors to look beyond the drug pricing controversy. There were a huge number of FDA approvals in 2017 which increased investor confidence. The Pharmaceutical sector is also off to a strong start in 2018 and is expected to grow further during the year. There are also Expectations of mergers and acquisitions and a decrease in the corporate tax rate from 35% to 21%.

The best stock to invest in the Pharmaceutical sector are alexion Pharmaceutical and vertex pharmaceuticals. Alexion pharmaceuticals is expected to increase by 48% as per the analysts. Vertex pharmaceuticals is growing with its portfolio of cystic fibrosis drugs and has secured approval from the FDA for these drugs. This stock is also expected to grow 43% and is supported by strong buy sentiment.