How to Profit from Public Panic during the Holiday Season

If I were an investor who had an extra couple of hundred thousand dollars and wanted to make some quick money by the end of Q4 2009 and even Q1 2010, I would immediately invest most of that money in three companies: Johnson & Johnson, Novartis and GlaxoSmithKline.

You don't have to be a genius to figure it out. These companies are the main producers of the two most sought-out commodities for holiday season. It's not a new gadget, computer or a new Apple product. It's not a new toy either.

Massive amounts have already been sold in the case of one product and I'm sure it will continue throughout the winter season. As for the second commodity, people are lining up for it all over the developed world. Even governments are getting heat for not making it easier for the general public to get it.

The two commodities are of course hand sanitizers (specifically Johnson & Johnson's Purell) and Novartis and GSK are the main producers of the H1N1 vaccine. With the Avian Flu and SARS out of the way, Swine Flu is now the "fashionable" disease to have and be afraid of. With one sensational media story after another, we now have a huge demand for both hand sanitizers and the vaccine. People are afraid thinking that they're going to just drop dead after each sneeze, cough and headache.

Just walk into any office building, public space, airport, etc., and you'll see a sanitizer dispenser at almost every corner. Not to mention the amount that's being sold in pharmacies. As for the vaccine, can you think of the amount of money governments have spent? And when we turn on the news, we still hear people complaining that there isn't enough.

So for the companies producing these commodities, congratulations. If I had the cash, I would buy some of your stock right now. The current boost in your sales, fueled by public panic, free PR, extensive media coverage and relatively little marketing spending, should last at least until flu season is finished, which is great news for your share price.

Now if only I had some extra cash to invest with...