One of the major ways for investors to make money over the next 20 years will be in the health care sector. The reason can be summed up in two words: baby boomers. At 75 million strong, they will be spending an unprecedented amount of money on health care as they age.
As a result, you will have plenty of profit opportunities.
But you don’t have to try to guess which companies will be the big winners. I am not interested in which insurance company will benefit the most from health care legislation. Or which company will come up with the best artificial joints. Or even which drug company will develop the best arthritis treatment.
Instead, I am looking at the health care field as a whole.
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Before we get into specifics, let’s look at why the baby boomers are going to have such a huge influence on health care in this country.
Maxine Peters is a perfect example of what I’m talking about.
A few years ago, she had a bad fall. After four hospital confinements, she reconsidered the wisdom of living by herself. Maxine was dealing with bad knees, back pain, and declining vision. So she decided it might be best to move into a facility where she could get round-the-clock medical attention, as well as help with day-to-day tasks.
Maxine is far from alone. Roughly 70% of Americans over the age of 65 will require long-term care of some sort. And over 40% will need nursing home care for some period of time.
With the first baby boomers turning 65 this year, it’s easy to see why the demand for long-term care will continue to grow. The number of elderly Americans will jump from 35 million today to over 75 million by 2030.
“We’re talking 75 million people classified as baby boomers [who will] consume health-care services much more than their parents,” said Dr. Bruce Koeppen, founding dean of Quinnipiac University School of Medicine. It’s the ‘Me Generation.’ By their very nature, they will consume more health services.”
This includes more visits to the doctor. More hospitalizations. An increased number of heart surgeries. Knee replacements. Hip replacements. The list goes on and on.
The growth of the health care sector means investors who know where to invest can make big profits for many years.
And I have found one investment that I believe offers you an outstanding opportunity. Steady growth as more and more baby boomers flood the health care system, and steady income as this investment pays you quarterly dividends like clockwork.
Keep in mind, too, that the health care sector is virtually recession proof. No matter what the stock market does, demand for medical services will continue to climb.
Add it all up and I believe this investment could hand you 10%+ gains and a 5%+ dividend every year going forward.
Tomorrow, I will give you the details on this exciting and growing part of the health care industry – and tell you how you can get my favorite pick.