The Best Bets in Bionic Investing

Med-tech companies that cater to baby boomers' orthopedic and cardiac needs could be on the cusp of a huge opportunity

At the end of 2006, equity analysts were celebrating a miraculous year on Wall Street. M&A activity and impressive earnings boosted the Dow Jones industrial average past 12,000 for the first time. But not everyone joined the fun. While sectors including energy and utilities powered the broader Standard & Poor's 500-stock index in 2006, the health-care sector was a relative weakling. The S&P Health Care index rose 5.4% on the year, the worst performance of any major sector and well behind the S&P 500's 13.6% rise.

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