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Want to Retire Soon? Don't Invest in This Industry!

By Max Macaluso and Sharon Yep - Apr 11, 2013 at 6:30PM

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There are many different strategies investors can use to protect their wealth as they near retirement --- but investing in this industry is a risk that may not be worth taking.

The biotech industry on the whole was on a massive winning streak in 2012, and it has started 2013 in a similar fashion. In fact, the iShares Nasdaq Biotechnology index is already up 13% since the start of this year, and there have been a few biotech stocks, such as Keryx Biopharmaceuticals, that have more than doubled.

However, for every biotech success there are a plethora of failures. Poor clinical trial data or drug recalls are some of the things that can cause stocks to plunge virtually overnight. For investors thinking about retirement, it's best to stay away from the smaller players in this speculative and complex industry. Instead, more diversified dividend stocks like Johnson & Johnson (JNJ -0.57%) are typically much safer investments. Health care analyst Max Macaluso sheds light on this topic in the following video.

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