Go With What You Know

     There are two things in life that are certain: Death and Taxes. As a volunteer tax preparer, I often get asked "how long do I have to keep doing this". The elderly client thinks that at a certain age, they can stop paying taxes.Wrong! I usually respond with another question "How long are you going to live". Just like Uncle Sam wants his due each year, the Grim Reaper is also waiting for each of us. What does this have to do with investing? Well, investors are always looking for a sure thing, here it is. Every day, 10,000 Baby Boomers turn age 65. This trend will continue for another 10 to 12 years according to the Pew Research Center. By year 2030, fully 18% of all Americans will be age 65 or older. Younger generations need to think about investments that will benefit from this demographic trend. The first thing that comes to mind is the health care sector. Demand for health care will be very strong for the foreseeable future. The current uncertainty around Trump's Repeal and Replace legislation may create a buying opportunity for hospital stocks. Pharmaceutical stocks should also outperform during this period.  Insurance companies are filling my mailbox each day with offers to sell me a Medicare Supplement policy (they wouldn't do this if it wasn't profitable). A larger and larger part of our economy is going to be dedicated toward the aging Boomer generation.  Finally, the death of Boomers will also be a growth industry. There are about a dozen public companies that handle final arrangements for families of Boomers. One growing trend is cremation instead of traditional embalming, which saves money. One thing I didn't mention is the massive transfer of wealth to widows and children of the decedents. This should benefit financial companies that offer wealth management products like annuities, mutual funds, ETFs and management of funds.
     I have been writing  this blog for several months now and have had a good response in the amount of traffic to it. However, I am sure that by now I have confused some of you. There is a feedback feature with this Google blog and I would love to read some comments or questions. I try not to offer specific investment recommendations but like to point my readers in what I think is the right direction. So let me hear from some of you.