When this bulge in the population was born, companies that produced baby products (food, toys, etc.) had increased profits. Stocks of toy companies went up when the baby boomers became toddlers, kids, and teenagers. Clothing companies did well when the generation needed to be "hip", "cool" and popular. When the baby boomers entered the work force, car sales increased dramatically and stocks like Ford (F) and General Motors (GM) did well. When the baby boomers were buying their first houses, real estate stocks looked promising. Such a surge in the population has dictated the course of certain markets, and now the baby boomers are nearing the end of their careers and retirement.

Pharmaceuticals are used more by older people than anyone else, and a great many people are approaching the age where they become more dependent on medications. With all of the current wonder-pills out on the market (Viagra, Prozac, Lipitor, etc.), and with the largest part of our population approaching a greater need for them, drug and pharmaceutical companies are looking like good stock buys.

Who knows what Pfizer (PFE) will come out with next? Aside from a large market for the normal health drugs, they have a deep pipeline and are coming out with new drugs all the time. Their Viagra pill was a huge success, and many think that there are more great ideas coming.

Most people don. t like to think about it, but as humans grow older their health starts to fail. Merck (MRK) has been dedicated to improving the quality of human life for over a century, and Merck will continue to do its best to keep Americans, and the world, in good health. The company. s vision statement states:

"We are in the business of preserving human life. All of our actions must be measured by our success in achieving this goal."

Merck. s outlook on its business and its market certainly makes it a great company, especially since the baby boomers will provide it with a larger market than they. ve ever had. People are living longer now, and pharmaceutical companies are in demand.

Merck isn. t the only good pharmaceutical company out there (but it. s certainly one of the biggest and best). Following large influences on markets, like observing the effects of the baby boomers, can lead to accurate predictions of the future, good stock picks, and financial success.