Last October, I voiced my growing concern over bubble-like excesses in the health care industry.

I showed how the most speculative and volatile subsets of the health care industry ­– biotech and pharmaceuticals – had enjoyed a massive boom since the March 2009 bottom. By last July, pharmaceutical stocks were up 455%, and biotech stocks were up 520%. These insanely high prices, to me, looked eerily similar to the bubble-like prices we saw in mining stocks in early 2011, and in oil and gas stocks in early 2014.

Hence, my suspicion that our beloved health care industry might just be “the next boom to go bust.”

And I warned you that two health care ETFs – the SPDR S&P Biotech ETF (NYSE: XBI) and the SPDR S&P Pharmaceuticals ETF (NYSE: XPH) – could lose between 45% and 70% in as little as 12 to 18 months.

It was a bold warning, I realize. But so far, I’ve been right. Pharmaceutical and biotech stocks have taken a beating in the last four months, losing 15% and 26%, respectively.

That should make you take notice!

Of course, back in October, not everyone agreed with my skepticism of the health care industry. In fact, one Boom & Bust subscriber wrote to say it was one of the “lamest explanations” he’s ever heard.

Subscriber Eric B. said:

The enablement of health care cost growth has been occurring since just about the inception of Medicare. Cost containment has been a recurring political issue during that entire time frame. So what makes you think that now is the time we have the political will to ignore the special interest groups in a trillion + dollar industry?

You now have a very significant (and growing) voting bloc (the baby boomers) who are dependent upon Medicare for their health care insurance. If their health care choices begin to diminish, they will become politically militant and threaten the withdrawal of support of their legislators. So again, what makes you think that now is the golden moment for health care cost containment?