Why Healthcare Investing Will Increase in Importance

Posted: Mar 21, 2015 12:01 AM
Why Healthcare Investing Will Increase in Importance
“For decades health spending has grown faster than the economy as a whole. But the growth in America’s health-care spending is slowing.” – The Economist (March 7, 2015)

The Economist recently suggested that America’s out-of-control spending on healthcare – 17% of gross domestic product (GDP), higher than any other nation – is about to slow down.

But that prediction doesn’t mean healthcare investing will slow down. Why? Because of several reasons:

1. Under ObamaCare, more Americans are getting insurance. Today, only 12% are uninsured, a historic low.

2. Medicaid and other healthcare benefits for the poor are expanding rapidly. Medicaid spending grew 20% in 2014 and is expected to increase 30% in 2015.

3. Americans are getting older. The aging of America is a fact of life.

As the following graph shows, the aging of America means a substantial increase in health costs.

Expect more money to be spent to pay for senior citizens’ medical expenses, nursing homes, etc.

Currently, the largest position in the Forecasts & Strategies investment portfolio – a full 30%, or five out of 16 recommendations – is in the healthcare sector! And all of our healthcare positions are profitable and increasing in share price almost every trading day. For details, go to
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