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6 supertrends ... and 6 superstocks

If they don't squash the market, this Fool will shave his head.

Betting on supertrends
Tom Gardner, Motley Fool
Betting on supertrends
One of the very best and very worst approaches to investing is to "play the trends." This sort of pure momentum investing is flourishing among hedge fund managers, whose one-year-bonus models lure them into very hot stocks in very sexy industries.

It will not end well for their shareholders: The most efficient way for an investor to fall headlong from prosperity into poverty is to buy shiny objects at their highest prices.

But patiently investing in long-term demographic trends will set up your portfolio for sustained super-growth. You won't be rewarded for it day by day. You will be buying forgotten and unforgiven stocks during painful industry downturns.

But the returns can be extraordinary. We've profited from these techniques in my small-cap newsletter, Motley Fool Hidden Gems, where our picks returned 45 percent for the past 12 months, making it the top-performing newsletter, according to industry watcher Mark Hulbert.

Click on for six demographic supertrends I believe will drive select industries to sustained market outperformance over at least the next five years. In each I've identified one accompanying stock that I think will roundly beat the S&P 500. If I'm right, you will suffer this Fool gladly. If I'm wrong, and my basket of six stocks does not beat the S&P 500, I'll shave my head.
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