SPECIAL FINANCIAL REPORT

The Bob Livingston Letter™

P.O. Box 1105 • Cullman AL 35056

The New American Century

Politicians, analysts and themedia are united in trying to

get you to believe one overarching“truth” that they’ve devised foryour consumption…

They want you to believe thatAmerica’s future — and Americaitself — is on the decline, whileChina and the Asia-Pacific regionwill rule the planet’s economy forthe next 100 years.

They call it the “Asian Century.”I call that kind of thinking

the worst investing mistake youcan possibly make.

This is serious business and a serious opportunity if you pay

attention, but, as always, informationis the key.

Think about it for a minute:who’s telling you that it’s the AsianCentury? And who benefits if youand millions of others believe it andstart investing that way?

The well-respected McKinseyQuarterly, the business journal ofMcKinsey & Co. (the worldwidemanagement consulting giant), ran an article with the headline“Welcome to the Asian Century.”

Was it news? Analysis?Reporting? No, it was an interviewwith Stephen Roach, then-chairmanof Morgan Stanley Asia and authorof a book called “The Next Asia:Opportunities and Challenges fora New Globalization.”

My guess is that you knowexactly who benefits from that article.

The British paper The Guardianpublished a piece in its businesssection with a headline that askedsimply, “Will This Be the Asian Century?”

That’s quite a seed to plant in the investor’s mind… yet, take alook at the author. His name isStephen P. Groff, and he’s the vice-

president of the Asian Develop mentBank. I don’t think anyone wouldbe surprised that he would want the 21st century to be all-Asia.

The World Post, a publicationof the Berggruen Institute, ran anarticle in The Huffington Post tellingreaders that the Asian Centurywould belong to India, not China.

The Berggruen Institute wasfounded by billionaire NicolasBerggruen, a huge supporter ofliberal-leftitst and socialist policy.In fact, The New York Times reportedthat in 2015, “Mr. Berggruenconvened former prime ministersand other eminences in Beijing todiscuss the future of China. Uponthe group’s arrival in Beijing, the roads were cleared for theirmotorcade to the Great Hall of the People for a meeting withPresident Xi Jinping.”

At this point I’m sure you’re shaking your head at the biasinvolved here. But it goes further…the author and “expert” who wrotethat article is Samir Saran, vicepresident of The ObserverResearch Foundation.

That sounds very non-partisan,except that it’s funded by Mukesh

INSIDE THIS ISSUE:

Asia’s Growing Courtesy ofAmerican Innovation................2

What Do the Changes in China Mean for U.S. Companies?................................3

Essential Investments for the New American Century........... 4

The Next Boom: Healthcare................................ 10

Your Window of Opportunity............................ 15

1

Forget claims this will be an “Asian century” — the next 100 years will be an American century… and here’s how to profit from this once-in-a-lifetime“golden gap” between U.S. tech know-how and the needs of a growing Asia.

Ambani, one of the world’s richestmen and majority owner of RelianceIndustries, India’s refining, petro -chemical, oil and gas conglomerate.

In other words, another “expert”with an inherent bias towardmaking you believe our futureresides in Asia.

I could go on quoting expertsand reports and news articles… but maybe the best example wasthe Obama admin istration, whichseemed like it almost wantedAmerica to fall behind the rest of the world, especially Asia. Theadministration directed HillaryClinton, while she was secretary of state, to write:

“The Asia-Pacific has becomea key driver of global politics.Stretching from the Indian sub -continent to the western shores of the Americas, the region spanstwo oceans — the Pacific and theIndian — that are increasinglylinked by shipping and strategy. It boasts almost half the world’spop ulation. It includes many of the key engines of the globaleconomy…”

In case that isn’t enough foryou, there’s even an Asian CenturyInstitute to further the belief thatAmerica’s time is past.

Nothing could be further fromthe truth, as you’ll discover in aminute.

You see, it’s still good oldAmerican know-how, Americancompanies, Amer ican workers and American technology andinnovation that’s behind even the

biggest success stories in Asia.More on that in a minute…

but first I need you to be aware of a trend…

Some folks are taking theposition that we have arrived at the end of America altogether.� A Human Events article

declared “It’s the End ofAmerica as We Know It, and America Feels Fine.”

� The Financial Times wrote,“Trump marks the end ofAmerica…”

� Slate magazine actually has an interactive map that lets you choose how the end ofAmerica happens.None of these folks give America

half a chance to succeed and revital -ize itself — to be great again, asDonald Trump has repeatedly said.And certainly none of the “End ofAmerica” crowd see the silver liningof an investment oppor tunity wehave before us.

So before you listen to these so-called “news” sources and analystswho can’t see their noses an inch infront of their faces, let’s look at theevidence of what’s really happeningbetween Asia and America, andwhy the next 100 years could bethe biggest investing oppor tunityyou will ever have to capitalize ongood old American know-how —that is, before the rest of the worldeventually catches on and no longerneeds U.S. innovation in theseareas. However, as I’ll show you,that won’t happen in your lifetime…

Asia’s Growing…Courtesy of American

InnovationThose who say the 21st Century

belongs to Asia, or even China inpartic ular, talk about how the pop -ulation of the world’s largest regionis growing faster than any other. Andmany of them part of a growingmiddle class, billions strong.

And on its surface it seems to make sense.

Just look at the chart on page 3.The U.S. only accounts for lessthan 8 percent of the world’spopulation, where Asia contains astunning 60 percent.

Many Asian economies aregrowing like kudzu weeds. Even if they don’t have the double-digitGross Domestic Product growththey had five years ago, they’rethrowing off growth rates thatestablished economies in the West could only dream of.

China is predicting a 7 percentgrowth rate — and the worldeconomy shudders because it’sfrighteningly low. For a country of 1.4 billion people in a land massabout the size of the U.S., that’sstunning. Even now, as China is in a “recession,” it’s still postinggrowth numbers that blow awayanyplace else on the planet.

The U.S. would be thrilled witha 2 or 3 percent GDP. And Europewould be happy to stay out ofnegative numbers over the courseof a year.

The story goes that the Westerneconomies have hit their peak. That

2

given the realities of the globalmarket place, all the wealth can’t remain captured in the U.S. and Europe.

India and China (and Indonesiaand Southeast Asia) are nowunlocking their economies andgetting in the game. When theystart to build middle classes it willunleash a consumer revolution thatthe world has never seen.

And as many global investingexperts say, the road to the middleclass doesn’t begin with a new caror house, it starts with a new pairof nice shoes, or a good pair ofpants, name brand detergent, somenew dinnerware. Simple things, butbillions of those simple thingsbuild the base of an economy.

But it really starts before that. It starts with the companies thatpower this growth.

And here’s a fact you need toknow before you invest your hard-earned money:

The companies that will power this growth for the next decade are U.S. companies.

Asia has some impressivenumbers. But what they don’t haveis the industrial infrastructure andhistory to supply their nations withall that’s demanded from a modern,first-world economy.

Many of these countries, Chinabeing the shining example, havebuilt impres sive export-basedeconomies. They’ve built hugefactories to make goods that wereshipped to the West.

However, the reality is thatmost of China is still very muchthird-world. It has unreliableinfrastructure and a less-than-modern electrical grid. And asmany factory workers as they havebuilding iPhones, most don’t havethe skills, experience, innovation or ingenuity to single handedlysupport the next huge phase of

their growth — which is coming.Remember it took America 100

years for the Industrial Revolutionto change America, and it may takeChina that long to build out itscountry to the point where much of it is modernized.

That means the most technology,and the country with the mosttechnological innovation and theknow-how to support that tech, isthe United States.

The scale here is huge, and mostpeople don’t realize just how huge.

The U.S. has 330 or so millionpeople. Add a billion to that andyou have China. Add another billionor more, and you have India. Thecountries of Southeast Asia haveanother billion people… are youbeginning to see the possibilitiesfor growth? And the invest ingopportunity you have right now?

If you think U.S. companiesand the U.S. are finished, over anddone with, then close this reportright now and stop reading. But ifyou want to read about some of thestrongest, most explosive investingopportunities available this year,then turn the page… because we’renot talking about penny stockshere. These are the Americancompanies that will help build the New American Century.

What Do the Changes in China Mean for U.S. Companies?

The success of the manu -facturing story in Asia has forced amajor change to their demographics.Millions of people have moved

3

World Population by Continent14.57%

0.53%

60.67%

10.82%

7.75%

5.65%

6.58E-5%

Asia

Antarctica

Europe

North America

South America

Oceania

Africa

4

from rural areas to the cities andhave begun to work for moreindust rial-based companies. Yes, it has raised the peoples’ standardof living… about 3 billion people.

Streetlights and reliableelectricity, clean running water,health and safety standards forfood products, as well as medicineswere never part of rural life in Asia.

Now, people have begun toexpect from their governmentswhat they expect from the comp -anies they buy from — consistentquality and dependability. Theywant telecommunications thatoperate throughout the country.They want power for their devices.They want to be healthy…

And this is where the U.S. firmscome in. They have the historyand expertise to help build theseprojects, true, but now so do Chinaand other countries.

So how can U.S. companiesdominate in Asia?

One simple word: support.There’s little doubt that the

Chinese are very motivated tobuild their own modern economy,but that takes years, even decades.And China is just begin ning toorganize food and services fromnative companies.

For now and for a long time to come, whether it’s a nuclearpower plant, an offshore oil rig,medical equipment or pharma -ceutical distribution and admin -istration, U.S. companies are the “first responders” to theseexpanding countries when they

need support for the growinginfrastructure.

China may supply the steel, andeven a lot of the labor, but whetherit’s a huge water treatment plant ora natural gas refinery of medicaldevice training, U.S. companieswill need to be in China and Asiafor decades supplying the manage -ment and support structure toenable everything to run right.

That’s why we say this isn’t so much the Asian Century as it is theNew American Century.

American companies will be everywhere, if many timesbehind the scenes, doing workthat is essential if Asia wants tomove forward.

Essential Investments for the New

American CenturyFollowing, we will examine

four sectors in Asia, particularlyChina, where this new era ofgrowth is creating enormousopportunities for America’sinfrastructure companies in theareas of power, energy, healthcareand pharmaceuticals.

We will also talk about fourstocks that will lead the way in thisnew global marketplace.

Instead of being left behind,these companies will use Asia’sgrowth to maintain their dominancein the sectors they already masterand help your portfolio grow too.

This quartet knows how to workwith China, unlike other U.S. firmsdiving into China to cash in. They

have taken the time and money to lay the ground work and develop a positive relationship with the Chinese government andChinese industry.

Power to the PeopleSo far, in Asia much of that

growth has been fueled by coalpower plants. And it’s obvious toanyone who visits the burgeoningcities. The pollution is evenoverwhelming to the citizenry.

During the summer Olympicgames in Beijing, China shut downcoal-burning power plants andfactories for the comp etition so the air was cleaned up for thethrongs of international tourists.

But coal is cheap and coal-firedplants are easy to build. And whenyour economy is growing as fast as China’s, it’s difficult to sacrificegrowth for some bad air.

Hydro has also been a bigfactor since it’s relatively cheap.But a deep look at countries thatrely on hydro will show that it canbe very dangerous to do so becauseit’s dependent upon rainfall; youdon’t get enough and you’re indeep trouble.

A snafu at a hydro plant leftmore than 300 million Indianswithout power for days in 2012because the overloads on theantiquated electrical grid cascadedblack outs across the nation. It wasthe biggest power outage in historyand started with an overburdenedhydro plant.

Providing safe, reliable elec -tricity to citizens and businesses

throughout a nation is fund amentalto being a credible part of theinternational community. You can’texpect foreign investment — oreven domestic investment — ifyou don’t have a reliable grid andaccess to electricity.

It’s tough to run server farms,financial institutions, advancehealth care operations and tele -commun ications companieswithout a 99.999 percent-reliablepower supply. And much of thatheavy lifting has to be done on theutility side, not the business side.

This is the “clay feet” in thegreat Asia growth story.

Asian countries have all theingredients for becoming theworld’s leading economies. Yet,having been isolated from much of the progress of free and openmarkets for much of the last 50years has meant they are just

figuring out the tools for taking on massive projects with globalpart ners and making it workevery time.

For example, if China is to hitits goals of significantly reducingits carbon emissions by 2030 as ithas pledged, it will need about1,000 nuclear reactors, 500,000wind turbines or 50,000 solar farms.

This means China has to under -take a radical environmental andeconomic makeover. It has to leapfrom the pre-industrial revolutionto the post-industrial revolution.President Xi’s commitment to capcarbon emissions by 2030 and turnto renewable sources for 20 percentof the country’s energy comes witha price tag of $2 trillion.

And when you’re spending thatkind of money you want to makesure the work is done right.

There’s one country whose

comp anies are perfectly placed to step in and do the job…

The United States.Yes, while the media is

plastering news of Asia’s riseacross the TV, what they are nottelling you is that the growth, the technology and the massiveprojects are all powered by goodold American know-how, hardwork and inventiveness, plus U.S.mastery of engineering, soft wareimplementation and project designand management.

This behind-the-scenessupport is something Americansshould be proud of, and it’s a signof good things to come for a NewAmerican Century and yourinvestment portfolio.

The New Power GridA large-scale rebuilding of the

Chinese economy doesn’t end withelectri fying cities.

It’s also about developing a solid and reliable energyinfrastructure.

One company that has beendoing this for decades is FluorCorporation (NYSE: FLR).

Building a nuclear plant is a zero-tolerance operation. And if you need to build 1,000 of them, they need to be scalable and consistently perfect. That takes decades of experience from organized forward-lookingcompanies, like Fluor.

Fluor is a “professionalservices company,” which meansit’s one of the world’s leading

5

multinational engineer ing andconstruction contractors. It buildsbig stuff like power transmissionstations, railroads, mining andmetals processing stations, carboncapture infrastructure and nuclearreactors, as you’ll see in a minute.

And Fluor is the perfect exampleof where, if you look deeply intoAsia’s economy as we have, you’llfind Amer ican companies poweringthe growth.

You see, Fluor has already built one the world’s largest polysiliconproduction facilities in the world in Xinyu City, China, and is alsoproviding detailed engineering for the polysilicon-manufacturingprocess, technical support forprocurement and field support forLanco Solar’s huge polysilicon-plant project in India.

Polysilicon is used in the manu -facture of solar panels, and Fluor isvery involved in building out similarfacilities around the country to allowthe Chinese to establish a manu -facturing base for world-class solarpanels that can be used domesticallyand sold globally.

Fluor has been in China since1978 with locations in Beijing and Shanghai, so it has proven itscommit ment to China’s long-termaspirations. In early December 2014Fluor signed a Memor andum ofUnderstanding with the ChinaNational Nuclear Corporation, astate-owned enterprise with over100,000 employees, to work jointlyon nuclear, solar and wind energysystems in China, Germany and the U.K.

This puts Fluor in a strategicposition to do major work onChina’s most pressing energyprojects for years in the future.

Fluor is also part of a radicaldeparture from the massive nukepower plants that are currentlyconstructed at huge cost and oververy long timescales. Fluor is amajority owner of NuScale Power,an Oregon company that buildsSmall Modular Reactors (SMRs).

The SMRs are significantlysmaller than traditional reactors;easier to install and modular, so youcan scale up or down if necessary.What’s more, you can place themcloser to where you need the power,saving transmission loss andinfrastructure expense.

This technology has been aroundfor decades, but nukes went out of style just as this technology was maturing so it never got muchattention. But now that emergingnations are looking towards cleaner,more efficient electricity, SMRshave a real market.

Back in 2014, NuScale officiallysigned a contract agreement withthe U.S. Department of Energy for funding that will support thedevelopment, licensing and comm -ercialization of the company’snuclear SMR technology.

The huge markets in India andChina promise customers, and Fluorhas a strong international presencein gas-to-liquids that small reactorscould support.

It’s not just emerging marketsthat make Fluor’s prospects as an

investment strong… NuScale has a roadmap to build

one of its 50-megawatt reactors inIdaho by 2025. And in the U.K.,where the Brits are looking toreplace coal power, NuScale’s smallreactors are perfect, and Britain’sTreasury said last year that it will be plowing over $400 million intodeploying SMR technology in theU.K. over the next five years.

Even that’s not the wholepicture for Fluor. It stands tobenefit from its NuScale investmentfor a minimum of ten years andprobably many more.

Fluor is already expected to growmore than 8 percent a year for manyyears, and that’s not including itsinvest ment in NuScale. And whenFluor deploys all of its technologyin China and India it could revo -lution ize the nuclear power industryacross the globe — and make Fluora lot of money. How much?

The global prognosis for small,scalable nuclear reactors, BloombergMarkets says, may total as much as$495 billion by 2035, according to areport in late 2014 by the NationalNuclear Laboratory, which advises the U.K. government.

You read that right. Almost $500billion. That is a lot of profit to behad by the only player in its field.You read that right as well… NuScaleis the only American companydedicated solely to developing andcommercializing this technology.And Fluor is a majority investor.

Even without SMRs, Fluor iswell respected in China, and that

6

means a lot given all the infra -structure that needs to be built out.Fluor is a buy right now at only $53and change compared with its all-time high of $95.78 back in 2008.Both technical analysts and othersare predicting $66 a share over thenext year, and it’s been as high as$82 a share as recently as 2014with technical traders seeingstochastic indicators calling for a bounce upwards.

With the agreements Fluor hasin place, plus profit predictions forits own operations and NuScale’s,we think this stock is one to rideupwards for many of the comingyears in this New American Century.

China’s Own EnergyIndependence Movement

Nuclear is only part of China’senergy independence plan. It has, in recent years, gone from a net oilneutral country to a massive oilimporter — the biggest in the world now that the U.S. hasstarted becoming more energyindependent.

The Chinese are now starting to build out their own energyresources; offshore drilling, frackingand natural gas in and around China.They’ve also started to work withcountries in Africa and SouthAmerica to secure its own suppliesof oil as well as develop a newgeneration of engineers and geolo gists that understand how to carry out explor ation, refiningand production.

But even from a domesticstandpoint, China has enormous

energy possibilities.If fracking has been a boon in

the U.S., it pales in comparison tothe opportunity and sheer volumeof oil and natural gas in China. Andthat will matter more and more forChina’s internal and external growth.

Plus, many Chinese shale fieldsare close to India which makes astrategic partnership highly likely.China is also working on a signifi -cant pipeline deal with Russia.

Already, the Chinese oil industryhas over 100,000 employeesworking in 85 nations.� The Financial Times reports

India is in talks with Russia to swap natural gas with China as an alternative to a $25 billion pipeline.

� China’s biggest energycompany has joined with Indiain negotiated long-term liquefiednatural gas supply contractsworth billions as well.An increasingly important driver

for the growing demand of naturalgas is its use in the production ofelectricity. And the customer base isexploding in Asia, where “the econo -mies of India, Indonesia and Chinaare rapidly expanding and mod -ernizing,” The Motley Fool reports.

An International Energy Agency report entitled “IndiaEnergy Outlook” estimates thatIndia’s installed electricity-generating capacity alone willalmost quadruple by 2040 and that investment in energy supply in India has increased substantially,reaching almost $77 billion on

average since 2010. If you think about these many

billions of dollars available tocompanies doing business in Asia,the profit potential from a businessperspective is staggering and, froman investing perspective, tantalizing.

Yes, China’s energy reserves are enormous, but like manyresource-rich nations it’s generallybest to conserve your own assets if it’s cost effective. The nation’squest for single-source energy has also allowed China to grow its empire (and influence) in Africa and South America.

By offering incentives (theybuild roads, schools, infrastructure,etc. for free, as long as the hostcountry agrees to an energy deal) to developing nations in exchangefor drilling rights, China and itsgovernment-supported energy

7

8

companies have been able to build an impressive group ofsatellite nations that otherwisewould have been dependent on the U.S.-controlled World Bank for development resources.

Yet, regardless of where Chinalooks for oil and natural gas, whetherat home or abroad, it needs to buildexploration and production sites and equipment.

In India, more than a third of its$1 trillion in infrastructure spendinggoes to electricity, renewable energyand oil and gas pipeline projects.

And that means there is onecompany that will be involvedevery step of the way.

That company is Houston,Texas-based SchlumbergerLimited (SLB).

For nearly a century its corporatemotto has been, “Where the drillgoes, Schlumberger goes.”

But it’s not just old-fashionedholes in the ground that are thebackbone of Schlumberger. It’s the world’s leading supplier oftechnology, integrated projectmanagement and informationsolutions in the oil and gas industry.

True, where there’s an oil derrick,refinery, pump station, rig or pipelineSchlumberger is there.

Schlumberger is part of the recentconsortium agreement to set upIndia’s largest oil refinery andpetrochemical complex along thewestern coast in Maharashtra and isalready involved in the huge miningoperation at the Geleki Field inAssam. India subsidizes its energyexploration to the tune of more than

$277 billion a year according toChinadialogue.net’s reporting, soit’s a steady stream of governmentrevenue for Schlumberger.

More Than DrillsBut Schlumberger’s technology

goes beyond holes in the ground. It also finds the energy, designs theextraction techniques and runs theoperations. In other words, Indiamight supply the steel and Chinamight build the drill, but there needsto be someone there who knowshow to run the projects, and that’sSchlumberger — for years to come.

The Schlumberger brothersrevolu tion ized the drilling industryin the 1920s from their home inFrance. But it wasn’t long untiltheir new technology was beingused around the globe to find oresand oils with more accuracy thanever before.

In 1940 the company moved its operations out of Europe and to the U.S. because it was the globalleader in technology, particularlyelectronics. And since then,Schlumberger has lived up to itscorporate motto decade after decade.

Schlumberger has two businesssegments:

First, it supplies a wide range ofproducts and services that supportcore industry operational processes— that means everything fromgeological formation evaluationthrough directional drilling, wellcementing and stimulation, wellcompletions and productivity tocon sulting, software, informationmanage ment and IT infrastructureservices.

Second, its WesternGecodivision is the world’s largestseismic company and providesadvanced acquisition and data-processing services.

Both these segments are in highdemand in China as it looks todevelop access and experience to the latest extraction, exploration and production technologies. WhileChina doesn’t want to use all itsreserves, it certainly wants to beable to access them. And much ofits reserves will need to be removedwith non-traditional drilling methods,like fracking.

Relatively little of China’s energypotential has been tapped yet andSchlumberger will be one of the top companies to help Chineseexploration and production (E&P)firms to look, find and tap it.Schlumberger also has been workinghard to build a strong relationshipwith the Chinese government.

In 2012 Schlumberger openedthe Schlum berger China PetroleumInstitute (SCPI) in Beijing. Theinstitute has more than 100 petro-technical experts.

The Data Services and the Geo science & Petroleum Engin -eering (GPE) teams form the coreof the institute to deliver integratedpetro-technical services to Chinesenational oil and gas companies andto international oil companiesworking in China.

In addition to petro-technicalservices, the institute providestechnical support to Chinesenational oil companies for theirinternational projects, as well as

petro-technical training.This kind of intellectual help to

the domestic energy industry is avery important component ofbuilding successful professionalrelationships with Chinese comp -anies and the Chinese government.

Granted, the Chinese economy has pulled back onsome of its energy spending tosend divid ends to its investors. SoSchlumberger has pulled back abit off its high of $117 in 2014…

And lucky you, that meansSchlumberger is “on sale” rightnow at $85 a share. Because if youlook at the lifetime stock chart(below) for Schlumberger, it’sbeen on a steady climb since thecompany started.

And, as you can also see,Schlumberger has been throughplenty of ups and downs in its longhistory. Technically speaking, thestock made a big recovery move in January, even before oil hadfinished sliding. That speaks

volumes for the qualitySchlumberger embodies.

And considering the Saudishave strangled the oil sector for thepast two years and Schlumbergerhas managed to weather the storm,that means that as the globalenergy market continues to growfor decades to come, Schlumbergerwill be a huge part of building that future. If someone is drilling,looking, extracting, planning for orbuilding infrastructure for energy,Schlumberger will be there withthe technology and know-how to run things, no matter who issupplying the machinery.

That’s the reality for thisinvestment, and why this is such a great opportunity to buy thisenergy conerstone stock “on sale,”as we mentioned. When China and India further their moves forenergy inde pen dence like the U.S.is doing now, Schlumberger willbe there because it’s already there.

We haven’t even included the

massive offshore potential in WestAfrica and the elephant finds off ofBrazil’s coast, or even the potentialof Venezuela’s huge reserves,where Schlumberger is alreadyoperating, although on a limitedbasis as of this writing.

Plus, even though OPEC saysthey are cutting production, thereality is that Organization of thePetroleum Exporting Countriesproducers continue to produce atrecord levels, benefitingSchlumberger.

If that’s not enticing enough,how about a 2 percent dividend togo with all this potential long-termgrowth? Well, Schlumberger’s gotit. And for now, that dividend isbeating inflation. Not a bad deal atall, and a great price to go with it.Schlum berger is a buy for your“New American Century” portfolio.

Analysts are expecting a steady3 percent growth for the next fiveyears… which sounds boring untilyou realize these are the same

9

1 Day 5 Day 1 Month 3 Month 1 Year 5 Year Max

1980 1985 1990 1995 2000 2005 2010 2015

150

100

50

0

analysts who never saw oil pricesdropping or the Great Recessioncoming, for that matter.

Others see the global energydemand rising and a bright futurefor Schlumberger, like SeekingAlpha, The News Oracle, andMarket Realist, which correctlystates: “Its business model isdiversified and not overlydependent on any particular line of business, catering to upstreamcompanies’ needs. Its operationsare geographically spread to over85 countries, and they’re thereforerelatively insulated from an energybusiness cycle downturn in anyparticular geographic location.”

That’s why Schlumbergersurvived intact and profitable over the last few years and whythe company is best positioned to profit in the future from theNew American Century, asSeeking Alpha stated: “A valu ationcomparison of Schlumbergerindicates that while similarlypriced, Schlumberger is muchcheaper today than in 2008 and the stock has 40 percent upside tofair value” at a $102 price point.

That means a possible $140stock price over the next few years,with Morningstar® having a $145fair-price valuation and a possiblehigh of $168 per share, almost a100 percent gain from today’s priceas of this writing.

The Next Boom:Healthcare

You may think that thehealthcare system in the U.S. is

undergoing some major changes.Well it doesn’t stop at the ocean’sedge — on either side.

The social democracies ofEurope are having to rethink their healthcare systems now that many European economies are continuing to struggle withslow growth and economic-austerity measures.

And in China there’s an oldsaying. The greatest curse youcould wish upon someone is,“May your wishes come true.”

China is now a first-worldpower with one of the biggest andfastest growing middle classes onthe planet. It is an economic andglobal force.

But on the flip side, China hasall the challenges that go alongwith being a burgeoning economicforce, particularly one with 1.4billion people.

We’ve already discussed two ofthose challenges — building out apower grid and supplying consistent,quality electrical power and tappinginto its own energy resources so itdoesn’t become dependent uponforeign energy providers.

The other major area whereChina is now feeling the tug ofgrowth is in healthcare.

There are two things that changehealth spending: rising incomelevels and an aging population.Both are happening in China.

And as you can see from thechart on page 11, China has quite a ways to go before it gets close to parity with the Organization of

Economic Cooperation andDevelopment (OECD) whichcomprises 34 democracies withmarket economies that work witheach other, as well as with morethan 70 non-member economies to promote economic growth,prosperity and sustainabledevelopment.

Of course, the U.S. is an outlierhere, and as we know, more doesn’talways mean better, but China iscertainly a standard deviation ortwo below the norm.

But things are alreadychanging.

Life expectancy has increasedmore than 30 years in China since1960 and is now only five yearsbelow the U.S. rate. Infantmortality has also droppeddrastically since 1990.

And the median age in China is expected to increase through2050, almost the same trend as inthe U.S. as the baby boomers age.By 2050 in the U.S., the youngestbaby boomers will be the largestsegment of the U.S. population.

If that means major shifts inhealthcare resources in the U.S.,imagine what it means for acountry that’s four times the size of the U.S.

It’s in the national interest tokeep China’s growing populationhealthy and productive, especiallynow that the core growth in thenation is internal, rather than basedon exporting manufactured goodsto other countries. Now Chinaneeds to build out its domestichealthcare base, quickly.

10

Once again, its success meansChina can’t wait to build theinfrastructure, ramp up domesticproduction of cutting-edge medicalequipment, build in protocols andlogistics for drug distribution andinventory, all from an essentiallyground zero.

Building China’s HealthcareInfrastructure with AmericanTech

Virtually all of China’s medicaldevice manufacturers only makelow-tech equipment. And all of the top hospitals rely on outsidecompanies to supply high-techmedical devices.

And the growth rates forsupplying new technology to China’s hospital system

are enormous.It makes the dot.com boom in

the U.S. look like chump change.And remember the key here, justlike with oil infrastructure: this isall real equipment that also needsupkeep, training, upgrades andexpanding production to keep upwith growing demand.

There are only a handful ofcomp anies that can provide thequality and volume that Chinaneeds right now. One is a companyyou don’t normally think of ashaving a lot to do with medicine,but the U.S. company that hasmade significant inroads into Chinaand Asia is none other than thelegendary multinational blue chipGeneral Electric (GE).

Of course, GE is doing a lot

more in China than running itshealthcare business, but if there’sone sector where GE can realize amajor effect from China’s demandthen this is the sector.

It’s not very well known but GE is the world’s largest medical-imaging machine maker.

In 2011 it moved its 115-year-old medical imaging division fromWaukesha, Wisconsin to Beijing,China. This was part of a $2 billioninvestment across China.

This timing was just when X-ray machines were transitioningfrom film-based analog to digital.And digital imaging meant that you didn’t need to develop filmsand maintain that aspect of animaging department. You couldshoot X-rays and have the images

11

Total Expenditure excluding capital expenditures. Source: OFCD Health Statistics 2014; WHO Global Health Expenditure Database

Health expenditure as a share of GDP, China and OECD countries, 2012 or latest year%GDP Public Private20

18

16

14

12

10

8

4

2

0

16.9

11.8

9.19.39.39.49.49.59.610.010.3

10.910.911.011.211.311.411.6

9.3 9.3 9.2 9.1 9.0 8.98.1 8.0 7.6 7.5 7.3 7.3 7.1

6.86.2 5.9

5.4 5.46

United S

tates

Netherlands (1)

France

Switzerland

Germany

Austria

Denm

ark

Canada

Belgium

(1)

Japan

New Zealand (1)

Sweden

Portugal (1

)Spain

Slovenia

Norway

OECD

United K

ingdomGreece

Italy

Finlan

d

Australia

Icelan

d

Irelan

d

Slovak R

epublic

Hungary

Korea

Czech R

epublic

IsraelChile

Luxemb

ourg

Polan

d

Mexico

Estonia

China

Turke

y

immediately for interpretation and analysis.

It also meant GE couldcompete at a lower price point in more of the Chinese market.

GE has also been very involvedcreating institutional learningcenters, building a Chinese work -force not just of laborers butmanagers and executives as well.

These are the types ofinitiatives that help largecorporations prosper in Chinawhere they remain suspicious of Western companies bringingover experienced workers andtaking the labor of China withoutreseeding the country withknowledge and education.

Yes, GE is a massive company,so it takes large undertakings tomove the needle. China is one ofthem, at least for GE Healthcare, ifnot the entire company. In 2011the director of GE Healthcare

committed to a five-year plan that made building a base in China the division’s top priority.

It wouldn’t be too much to say that the recent sale of GE’sfinancial division was anotherfacet of the strategy to focus on the core businesses GE has alwaysmade money with and simplymoving its focus to Asia from theU.S. and Europe.

Add to all this the fact that GEnailed down $1.4 billion in newwork in Saudi Arabia. The Saudisare hoping to become a less oil-dependent economy in comingyears and this kind of massiveinvestment in GE’s products is avery encouraging sign that thecompany can successfully workwith less transparent leadership.

At this point, GE Healthcaremakes up about 18 percent of GE’s revenue stream and isgrowing rapidly.

And considering that: � Growth in healthcare spending

is almost double in Asia as it isin the rest of the world.

� GE is also an energy giant (with contracts in Malaysia,China, Indonesia, Vietnam,Korea and Japan) that justmerged with the oil and gassector’s Baker Hughes.

� It’s a transportation companywith acquisitions like Alstom (a French transport companythat has been present in Chinafor almost 60 years and wasone of the first western comp -anies to do business in China). …Then it’s not hard to see GE

adding even more to earnings pershare over the next few years. Infact, GE expects to add more $.50per share, which will bring it up to$2, so you can be sure GE’s stockhas plenty of headroom.

Also, keep in mind that GE isout of the finance business. It soldoff its online deposits businessto Goldman Sachs for $16 billionand, because of that, GE is fullyout of the clutches of the FederalReserve as a SystemicallyImportant Financial Institution(SIFI), which is an instrumentalprocess GE was subjected to.

All this makes GE a greatlong-term buy, as the company as a whole should grow in the 12to 15 percent range for the nextfive years, at least. That surelymeans higher dividends — whichare already almost twice as high as other conglomerates, at over

12

3 percent and growing for sevenyears now — and more cash inyour pocket or more shares, depen -ding on your investing needs.

Like Schlumberger, if you lookat a chart of GE’s stock price sincethe financial collapse of 2008, ithas been steadily climbing. Howhigh could it go?

GE has gained dominant marketshare in every one of its businessesand sold off those in which it didnot have dominance. As a result,GE’s share price has performed in line with the market recently,compounding at a respectable 14.4 percent annualized rate.Value Line sees more like 18 percent growth over the nextdecade, and says, “A common flawamong many investors is chasingfleeting trends instead of focusingon solid companies and the long-term plays that can generate firmand consistent income. Many alsooverlook the power of regulardividends over time, instead fallingprey to emotional trades that oftenprove to be folly.”

GE will soon become dominantin its healthcare business, and we haven’t even mentioned the “industrial Internet” whichincludes the “Internet of Things,”where GE has a large presence.And it just bought Swedishcompany Arcam AB and Germancompany Concept Laser, so it’seven in the 3D-printing andadditive-manufacturing spaces.Don’t forget that these businessesare starting to move into thehealthcare-technology space (3D-

printed organs and bones). Theseindustries could ultimately havethe same effect in GE’s marketsectors as manufacturing did inpast decades!

The Zacks Rank, which isknown as the “Billion DollarSecret” on Wall Street, has allgreen arrows upward for GE.W.G. Investment Research sees a $150 billion opportunity in thecoming future for GE’s connectedbusinesses…

GE is only $31 a share as ofthis writing and is certainly goingpast its pre-crisis level of $41 ashare in the near future. We feelthere’s no reason to think it can’tget back to its year 2000 high of$53 a share.

Technology of TreatmentLast year China passed a law

allowing online prescription drugsales and 2017 should be a big year

for sales. But you should know thatthis is where the “analysts” getcaught looking at the wrong thing.They push the overarching themeof Asia’s Century, and they see the consumers buying, and theysee the drug laws and they makeconject ures based on consumerspending and all the wrong metrics.

What they should be looking aton the investors’ behalf is who isgoing to be supplying the know-how to deliver better healthcare?

Because China has beencracking down on large, foreigndrug companies that were usingbribery to sell off-patent drugs tohospitals and pharmacies so bettingon drug companies in China isrisky at best.

To find investing winners it’swise to take the U.S. healthcaretransformation as an example ofwhat will happen in China. And

13

before you end up with the pillculture taking over China as it hasthe U.S., you have the diagnosticsector begin to boom.

Expensive drugs have theirplace, but it’s providing testingequipment to diabetics and testingequipment to diagnostic labs wherethe real demand will start. And in a nation where virulent forms ofanimal flus jumping to humanpopulations (bird and pig flus inpartic ular) due to population densityand living conditions, testingequipment becomes crucial tomodernize the society.

Yet right now in Asia there’s agrowing population, a populationthat is long-lived and one that isdemanding more “med tech” yetnot getting as much as it needs.

A McKinsey & Co. report says correctly: “More than half the world’s population lives in

the Asia-Pacific region, and…healthcare demand alreadyoutstrips supply… and the gap will grow in line with continuedincreases in income, population,disease burdens and generalawareness of health issues.”

In fact, by 2020 Asia is expectedto surpass the European Union asthe world’s second-largest med-techmarket (after the United States).

To reach these patients — most of whom are not wealthy still demand life-saving healthcare— it’s going to take a companyalready there, already doingbusiness and already havingsuccess in Asia.

In other words, for China and Asia in general, it’s the pickand shovel medical equipmentcompanies that will see growthimpact their bottom line.

And one of the best companies

to look at in this space is Becton,Dickinson and Co. (BDX).

Founded in 1897 as one of the first makers of syringes andsurgical equipment, BDX continuesas a healthcare company thatspecializes in medical technology,making medical supplies, devices,laboratory equipment and diagnosticproducts. That means everythingfrom needles and syringes tomolecular diagnostics. It has the lab side and disposabletechnologies down.

BDX has established roots in China before China was “cool.” In 1995 it opened its first manu -facturing facility in Suzhou, China.In 2008, it opened its second plantwhere it manufactures products todiagnose infectious diseases suchas influenza and other pathogens.BDX has since expanded the rangeof these products to diagnoseadditional bacterial, parasitic andviral diseases. And these productsaren’t just for domestic sales. BDXsells these products around theworld in all its markets.

Growth in China last year wasa currency-adjusted 17 percent,and that growth rate is expected tocontinue, if not accelerate. BDX’sgrowth rate in emerging marketswas 20 percent. This at a timewhen many U.S. companies were reporting weaker earnings from overseas because of thestrong dollar.

BDX is a perfect fit for growthin China since it’s not stepping ona nascent Chinese pharma and

14

biotech industry, but providingessential services (and jobs) foruniversalizing and upgrading itshealthcare system to first-worldstandards. BDX plays within thesystem and in turn is responsive to the needs the system deemsimportant. And it will continue to be rewarded for it.

BDX is around $170 a shareright now, which sounds like a lotto the average investor… until youconsider that other technologycompanies like Amazon ($795 per share) and Google’s parent,Alphabet, ($805 per share) aremany times more.

Also, from a shareholder’sperspec tive, BDX has another aceup its sleeve. It has increased itsdividend for the past 43 years in arow. Granted it’s only delivering a 1.7 percent dividend, but addingthat to a 26 percent return in thepast year doesn’t hurt. BDXaverages a 13 percent return on

investment and an 8 percent profitmargin with low debt and highcash flow… just the kind ofbusiness Warren Buffett wouldinvest in, for example.

BDX’s prospects as a solidlong-term growth pick continue togrow more com pelling as well —the stock has averaged 11 percenta year for the past ten years. Andthat kind of growth could be onthe low side as its growth in Chinaand other emerging marketscontinues.

Just the products it has in itspipeline, including basic infectionprevention for developing pop -ulations (like those in Asia) andproducts like pre-fillable syringesand analytical technology for detect -ing disease, could mean billions toits bottom line in 2017 alone.

Considering all of its prospects,we recommend buying Becton,Dickinson and Co. and watching it rise due to the next generation of

med-tech demand in Asia. $200 ashare is not out of the question for2017, and there’s no telling howhigh it can go from there.

Here’s one med-tech example,just to illustrate the potentialtimeline for profits: developing an intraocular lens for cataracts. AWorld Health Organization reportdetailed that it took “30 to 40 yearsfor the technology to evolve in a step-wise pattern, structuredaround a co-evolution between the invention of devices, medicalpractice and industrial participationin a mutually constitutive way.”

That’s quite a long timeline for profits indeed. And iSpiritSolutions revealed that, “Asia-Pacific is expected to be the fastestgrowing market [for medicaldevices]. China and India hold thekey for future market trends… for the medical devices marketowing to large population base and growing healthcare industry inthese countries. Around 70 percentof India’s medical device needs arecatered to by imports.”

This is why profits are expectedto rise for American companies in this sector to “jaw dropping”levels, and will be “home run”investment opportunities that canweather any storm, according toinsider investment sources atKiplinger and Money Street.

Your Window ofOpportunity

We here at The Bob LivingstonLetter™ often get the question, “Is it too late to jump in?”

15

In other words, how long doyou have to consider and mullover making these investments?

Let’s just say that informationtravels fast, and while we arealerting you to these opportunitiesbefore the knowledge becomeswidespread, it is precisely whenthese opportunities become knownthat demand increases and pricesstart rising. So you want to get inearly enough that you see thegains. Right now there are only afew of us who see the tremendousupside, but that will change.

What won’t change for the

near future is growth in Asia. Wefeel that it will indeed be a NewAmerican Century, as Americanknow-how fills demand fortechnology and industry in Asia.But, we also know that eventuallynew technology companies willemerge in Asia and establishedones will catch on — and they will start to run many of theirown operations. Yet that will take decades, even at the speed of modern technology, because it takes years to train the peoplewho will have to do the overseeingand even more years to turn rural

laborers into tech workers. It’s a unique time in the Asian

economy. They are strong in manyareas but still need Americanstrength and innovation to supportthe technology U.S. companiesinvented and still supply andwhere they are growing so fast that they don’t have the size orspeed to fill demand.

That means U.S. companiescan capitalize on Asia’s growth for long enough that if you investnow you will see a very healthyupside — and possibly yourchildren will as well.

The Bob Livingston Letter™ • P.O. Box 1105 • Cullman, AL 35056Special FINANCIAL Report • Copyright 2017

The information contained in this SPECIAL FINANCIAL REPORT is meant to educate the reader, and is in no way intended to provide financial,legal or any other services for individual problems or circumstances. We encourage readers to seek advice from competent professionals forpersonal and financial needs. The publisher and its affiliates, officers, directors and owner actively trade in investments discussed in thispublication. They may have a position in the securities recommended and may increase or decrease such positions without notice. This special report is published under the First Amendment of the Constitution of the United States, which guarantees the right to discuss openlyand freely all matters of public concern and to express viewpoints, no matter how controversial or unaccepted they may be. Any references foradditional information that we may provide are for the reader’s benefit only and are not affiliated with The Bob Livingston Letter™ in any wayunless otherwise stated. All information contained in this report is believed to be correct, but its accuracy cannot be guaranteed. The owner,publisher and editor are not responsible for errors and omissions. Bob Livingston, entities in which he has an interest, employees, officers, family and associates may from time to time have positions in thesecurities or commodities covered in these publications. Corporate policies are in effect that attempt to avoid potential conflicts of interest, and resolve conflicts of interest that may arise in a timely fashion.

BL-PR255-1716