Best of the Week
Most Popular
1. Crude Oil and Water: How Climate Change is Threatening our Two Most Precious Commodities - Richard_Mills
2.The Potential $54 Trillion Cost Of The Fed's Planned Interest Rate Increases - Dan_Amerman
3.Best Cash ISA Savings for Rising UK Interest Rates and High Inflation - March 2018 - Nadeem_Walayat
4.Fed Interest Hikes, US Dollar, and Gold - Zeal_LLC
5.What Happens Next after February’s Stock Market Selloff - Troy_Bombardia
6.The 'Beast from the East' UK Extreme Snow Weather - Sheffield Day 2 - N_Walayat
7.Currencies Will Be ‘Flushed Down the Toilet’ Triggering a ‘Mad Rush into Gold’ - MoneyMetals
8.Significant Decline In Stocks On The Cards! -Enda_Glynn
9.Land Rover Discovery Sport Extreme Driving "Beast from the East" Snow Weather Test - N_Walayat
10.SILVER Large Specualtors Net Short Position 15 Year Anniversary - Clive_Maund
Last 7 days
Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - 17th Mar 18
Strong Earnings Growth is Bullish for Stocks - 17th Mar 18
The War on the Post Office - 17th Mar 18
GDX Gold Mining Stocks Fundamentals - 16th Mar 18
Nationalism, Not the Russians, got Trump Elected - 16th Mar 18
Has Bitcoin Bought It? - 16th Mar 18
Crude Oil Price – Who Wants the Triangle? - 16th Mar 18
PayPal Cease Trading Crypto Currency Bitcoin Warning Email Sophisticated Fake Scam? - 16th Mar 18
EUR/USD – Something Old, Something New and… Something Blue - 16th Mar 18
DasCoin: A 5-Minute Guide to How It Works - 15th Mar 18
Stock Market Downward Pressure Mounting - 15th Mar 18
The Stock Market Trend is Your Friend ’til the Very End - 15th Mar 18
6 Easy Ways to Get What Women Want, for Less! - 15th Mar 18
This Isn’t Your Grandfather’s (1960s) Inflation Scare - 15th Mar 18
Eye Opening Stock Market Index, Volatility, Charts and Predictions - 15th Mar 18
Gold Cup At Cheltenham – Gold Is For Winners, Not For Gamblers - 15th Mar 18
Upcoming Turnaround in Gold - 14th Mar 18
Will the Stock Market Make Another Correction this Year? - 14th Mar 18
4 Ways To Writing An Interesting Education Research Paper - 14th Mar 18
China Toward Sustainable Economic Growth - 14th Mar 18
Stock Market Direction Is No Longer Important - 14th Mar 18
Trade Tariffs Defeat Globalists and Return Prosperity - 14th Mar 18
Stock Market Crash is Underway and Cannot be Stopped! - 14th Mar 18
Are Energy Sector Stocks Bottoming? - 14th Mar 18
Nasdaq Stocks Soars to New Record High After Strong Job Reports - 14th Mar 18
Bitcoin BTCUSD Elliott Wave View Calling for Rally toward $15,000 - 13th Mar 18
Hungary’s Gold Repatriation Adds To Growing Protest Against US Dollar Hegemony - 13th Mar 18
Record Low Volatility in Precious Metals and What it Means - 13th Mar 18
Tips for Writing and Assembling the Classification Essay - 13th Mar 18
Gerald Celente "If Rates go up too High, the Economy goes Down, End of Story" - 13th Mar 18
Stock Market Selloff Showed Gold Can Reduce Portfolio Risk  - 13th Mar 18
Silver Does it Again! Severe Consequences - 12th Mar 18
Has the Stock Market Rally Run Out of Steam? - 12th Mar 18
S&P 500 at 2,800 Again, Stock Market Breakout or Fakeout? - 12th Mar 18
The No.1 Energy Stock To Buy Right Now - 12th Mar 18
What Happens Next When Stock Market Investor Sentiment is Neutral - 12th Mar 18
Economic Pressures To Driving Gold and Silver Prices Higher Long-Term - 12th Mar 18
Labour Sheffield City Councils Secret Plan to Fell 50% of Street Trees Exposed! - 12th Mar 18
Stock Market Uptrend Resuming? - 11th Mar 18
Bond Market Interest Rate Yields Are Rising Again… Stocks Are on Thin Ice - 11th Mar 18
Death of Europe's Greenest City, Police State Sheffield Labour Council to Fell 50% of Street Trees - 11th Mar 18
Do All Bull Stocks Markets Need to Have a Bearish Divergence? - 11th Mar 18
An Inflation Indicator to Watch, Part 3 - 11th Mar 18
Online Stock Trading Tips - Tips about Online Trading & Day Trading - 11th Mar 18
NDX makes a new high. What does that mean? - 10th Mar 18
Blue Chip Companies on Track for $800 billion Buyback Record in 2018 - 10th Mar 18
Cheap Gold Stocks Basing - 10th Mar 18
An Introduction to Online Forex Trading - 10th Mar 18

Market Oracle FREE Newsletter

Urgent Stock Market Message

Baby Boomers Are Aging Quickly and Here’s How You Can Benefit

Companies / Demographics Jul 29, 2017 - 03:36 PM GMT

By: Charles_Sizemore

Companies If you’ve followed my writing for any length of time, you know how much respect I have for Harry and his demographic work.

Believe it or not, Harry, and his approach to forecasting, gave me the confidence to help launch Peak Income – an income newsletter – at a time when most investors were terrified of yield-focused investments.

The consensus two years ago was that inflation and higher bond yields were just around the corner, which would’ve meant a rough ride for the kind of investments I recommend.

In retrospect, that claim seems almost absurd. Inflation is still dead on arrival and bond yields have gone mostly sideways for the past two years.

But, back then, investors were legitimately concerned about the alternatives unfolding.

It was my knowledge of demographic trends, learned from my years working with Harry, which allowed me to go against the grain and start scoring very respectable returns for my readers.

Right now, as I wrote in the July issue of Peak Income, I’m following his lead again. My approach this month has to do with the power of perhaps the greatest demographic trend of all: the aging of the Baby Boomers.

We’re talking about the economic power of the nearly 110 million people born between the late 1930s and 1961, and how to generate a steady flow of income now, and later.

Specifically for my Peak Income readers this month, we’re looking at the “landlords” of the places – skilled nursing facilities, senior housing, and hospitals – that many Boomers will likely spend time in in the coming years.

Take a look at the “Nursing Home Wave.”

The chart below takes the number of Americans born every year, adjusted for inflation, and pushes the data out 84 years – the peak age for nursing home spending – so we can forecast peak demand for nursing homes.

A few things jump off the page immediately.

This simple demographic model shows that demand for nursing homes has actually been in decline for over a decade. But 2017 represents the absolute nadir of the chart. From this point on, demand for nursing homes is set to rise virtually every year until the mid-2040s.

This demographic model is not intended to be as precise as a sniper’s bullet. I prefer to think of it more as a shotgun. You point it in right direction, and it’s likely to hit its target.

But what this model tells us is that demand for senior care is set to rise for a long time to come.

Now, there are factors that can complicate an investment in this space.

In the healthcare landscape right now, despite constant debate about repealing and replacing Obamacare, most health insurance stocks are sitting near new 52-week highs. And Americans certainly aren’t getting any younger or healthier.

Demand for healthcare has never been stronger… and it’s only going to get stronger still with the aging of the Boomers.

At the same time, the sector of investments I target this month have taken a beating as of late.

I don’t know exactly the reasons why. I suppose there’s the perpetual worry about Medicaid reimbursement. Nursing home and assisted-living facility operators live under the constant threat of having the fees they collect for their services slashed at the government’s whim.

When Medicaid decides to cut its reimbursement rate, there’s really nothing a nursing home can do. They either accept the lower revenue… or close their doors.

But not even Medicaid fears can explain the weakness in this sector.

If you’ve invested for any length of time, you know that the market often makes little sense.

But that’s OK.

In fact, it’s good that the market is irrational. Were it perfectly rational all the time, like Spock from Star Trek, there wouldn’t be any profit left for us.

This investment yields close to 8% right now, and if it gets back to its 52-week high, which I see as a very good possibility, you can expect returns of 30% on top of the dividend.

Click here to learn how to take advantage right now.

Charles Sizemore

Editor, Peak Income

Copyright © 2017 Charles_Sizemore - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2018 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules