Regeneron Pharmaceuticals Inc (REGN), Amgen, Inc. (AMGN), Gilead Sciences, Inc. (GILD): Is College Debt a Drag on These Promising Healthcare Stocks

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Gaining diversity

But if none of this positive information is enough to sway you towards one or all of these three pharmaceutical companies, you have an option that will spread out your risk through diversity: iShares Biotech ETF Regeneron Pharmaceuticals Inc (NASDAQ:REGN), Amgen, Inc. (NASDAQ:AMGN) and Gilead Sciences, Inc. (NASDAQ:GILD) are this fund’s three largest holdings, comprising approximately 26% of its total assets. If their performance falters, however, the fact that the fund has 115 other holdings should work to compensate for this disappointment.

A final Foolish take

So, how could college debt manage to drag down these issues when such a positive aura swirls around them? Young professionals seem to be a natural match for stocks in the healthcare or medical technology fields, areas that might not be as appealing to their older counterparts who would prefer more traveled routes. But if they are entrapped by college debts they cannot invest in these securities or in anything else for that matter. So, these offerings lose out on a potentially valuable source of support: stock purchases.

People who accumulate the most college debt are almost by definition the most highly educated: lawyers, physicians. These professionals might ordinarily be expected to make investing part of their agenda shortly after they graduate and begin earning “impressive” salaries. However, as the new normal has come into play their having to repay education debts that might run as high as $250,000 is seriously limiting their ability to take those steps.

The article Is College Debt a Drag on These Promising Healthcare Stocks originally appeared on Fool.com and is written by Harriet Tramer.

Harriet Tramer Tramer has no position in any stocks mentioned. The Motley Fool recommends Gilead Sciences. Harriet is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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