Let’s be clear, while health experts believe the Swine Flu will return this fall or even sooner, no one is suggesting a pandemic that will sweep the nation.
To-date, the Swine Flu has proved not so much different than the seasonal flu, which returns in October or November each year.
Most of the deaths reported so far seem to be centered on younger people with underlying medical conditions.
There is speculation that older people may have some immunity due to previous exposures.
However, that doesn’t minimize the potential for the virus to mutate into something more deadly.
Flu Kills Thousands
Even if the Swine Flu remains more like the seasonal flu, it is important to remember that the seasonal flu kills more than 30,000 people annually in the U.S.
The Swine Flu virus seems to spread rapidly and with schools opening for the new year in September, it is possible the virus will wreak havoc with schools and businesses.
Back to the question: which stocks will do well when Swine Flu hits?
That’s hard to say precisely. Companies that make the vaccine and the anti-viral medications, stand to gain a lot of ground, although many of these companies are foreign owned.
Health Care Sector
Companies in the health care sector, such as makers of personal protection equipment used by hospital and clinic staff could gain.
If the Swine Flu proves an annoyance, but not much more, it is possible that there will be little if any benefit to individual companies.
If the Swine Flu returns with renewed strength, the results may be the same, because companies rushing products and drugs to market may incur additional expenses that offset some or all of any profits.
However, there is another broader question that some investors will ask: should you profit from the suffering of others?
My personal answer is no, you should not reap financial gain at the expense of another’s health or well being.
However, you should consider whether your investment actually contributes to or will profit from the suffering of others.
If you buy stock on the open market, the company does not benefit under most circumstances. You are buying and another investor is selling.
The transaction will not contribute to or diminish the suffering of others, since the transaction does not involve any profit or loss by the company.
You can imagine scenarios where an investment in a private company or a new stock offering could contribute to the suffering of others – such as limiting production of a drug to keep the supply low and prices high.
Indeed, if a company is acting irresponsibly, it is the stockholders who have the power to influence change.
The Swine Flu may pass this season as nothing more than another minor illness. A much stronger version of the virus may return instead, which could pose a significant health crisis for the country.
By definition, such a crisis could have devastating economic consequences as schools and businesses shut down.
Let’s hope for the best.
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