When I think of aging and healthcare, the movie Soylent Green comes to mind. The 1973 movie starred Charlton Heston and Edward G Robinson. It was Mr. Robinson’s final film. The movie takes place in 2022, with 40 million people in New York City. The population is suffering from pollution, overpopulation, depleted resources, poverty, dying oceans, and year-round humidity due to the greenhouse effect. Much of the population survives on processed food rations, including “soylent green”.
Considering 2022 is not very far off, within this article are some fine stocks and ETFs to consider for your long term healthcare portfolio.
Back in January 2015, Mr. Malcolm Berko replied to a reader’s question about investing $30,000 for their grandchild’s future. The reader was looking for stocks that that the grandchild could keep forever and not have to watch but would do better than the DOW if all the DIV were reinvested. Along with Amgen Inc. (AMGN $157.24) and Biomet which had just been acquired by Zimmer Holdings (ZBT $117.38), he recommended the following for long term investments:
Becton, Dickinson and Co. (BDX $167.64)
Baxter International (BAX $45.50)
C.R. Bard (BCR $220.96)
Bio-Rad Laboratories (BIO $124.72)
Varian Medical Systems (VAR $82.26)
Medtronic (MDT $81.23)
The Cooper Companies (COO $156.06)
Cardinal Health (CAH $78.47)
The United States population census count April 1, 2010 was 308,745,538. The percentage of persons 65 years and over was 13.0. Estimates for May 11, 2016 population is 323,529,724. The estimate for persons 65 years and over on July 1, 2014 was 14.5. (United States Census Bureau)
- Per capita national health expenditures: $9,523 (2014)
- Total national health expenditures: $3.0 trillion (2014)
- Total national health expenditures as a percent of Gross Domestic Product: 17.5% (2014) (Center for Disease Control and Prevention)
The Affordable Care Act (grossly misnamed in my opinion), Medicare, and Medicaid, all opened the door for increased Federal Government spending in addition to household spending for healthcare. By the year 2020, it is conceivable that we will be spending over $7.0 trillion for healthcare.
In April 2015, Mr. Berko recommended the following seven funds:
The Health Care Select Sector SPDR Fund (XLV $70.55)
The IShares U. S. Healthcare Providers ETF (IHF $125.89)
The Vanguard Health Care ETF (VHT $128.05)
The SPDR S&P Health Care Services ETF (XHS $57.44)
The IShares U.S. Healthcare ETF (IYH $146.04)
The IShares U.S. Pharmaceuticals ETF (IHE $138.25)
The IShares U.S. Medical Devices ETF (IHI $130.00) (This one is my favorite.)
The major segments of medical supplies and products are cardiovascular, orthopedics, wound care, in vitro diagnostics, diagnostic imaging, and surgical equipment.
The composite value for Medical Instruments and Supplies sector as of May 10, 2016 is $407.86.
Industry fundamentals for Medical Instruments and Supplies as of May 9, 2016: The market cap is 573.48B with a P/E of 23.89. Return on Equity (ttm) 6.02% and total Debt/Equity (ttm) 32.18
The Health Care Sector as a whole in the S&P, was up today May 10 +0.82% with a market cap of $4.34 and 1 year change of -3.93%.
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Can I found any details regarding to this subject in other languages?
I’m not sure how I can help. I only speak English and all my research was found in English.