Boomer Health Care Spending Forges Ahead


By Charles Mizrahi, Banyan Hill Publishing, Wednesday, July 8

In 1946, 10.6 million American soldiers came home from World War II … and altered the course of U.S. history.

We call them the “Greatest Generation.”

After suffering through the Great Depression and three and a half years of war, these soldiers were chomping at the bit for a new beginning. They were eager to start families, to enjoy the freedoms they fought so hard for.

And America wanted to help.

So Congress passed the Servicemen’s Readjustment Act of 1944, aka the GI Bill. Suddenly, the road was paved for World War II veterans to go back to school or to buy homes. They had a chance at prosperity and carving out a piece of the American dream for themselves.

But here’s where they changed the course of U.S. history…

The Greatest Generation got married. And they didn’t stop there. They filled those new homes with children … lots of children.

It was the greatest baby boom in United States history. More than 76 million kids were born between 1946 and 1964, making up about 40% of the U.S. population.

That’s how we got the baby boomers.

Chart showing that over 76 million Americans were born between 1946 and 1964.

And let me tell you … this generation would reshape American society for the next several decades.

They would:

  • Pack the nation’s schools in the 1950s to 1960s. These schools were built to hold thousands. Elementary schools could not be built fast enough to keep up with demand.
  • Fill the labor markets in the 1960s to 1970s. This was when a large number of baby boomers entered their prime working ages. In fact, labor force participation began a long-term rise during this time.
  • Buy up homes in the 1970s to 1980s. As these 76 million baby boomers entered their homebuying years, they drove housing prices through the roof.

The sheer size of this generation then drove countless consumer trends as they entered their peak spending years. In fact, in 2015, they controlled 70% of all disposable income.

It’s more than that, though.

Due to their large numbers, their very beliefs dominated almost everything in society. They are the definition of influential — an alpha generation if there ever was one. They alter economic patterns and institutions at each stage of their lives.

And now, this generation is pushing past 65. Because of that, they’re already shaping another massive sector…

Health care.

The Great American Health Care Boom Is Here

Health care is one of the largest and fastest-growing sectors in the world — particularly in America. Think $3.8 trillion worth.

Chart showing that healthcare spending has grown from just over 4% in 1960 to an estimated over 16% in 2020

I’m not exaggerating when I say that health care is a standout example of an alpha market.

In 2018, health care surpassed manufacturing and retail — the most significant job engines of the 20th century — to become the largest source of jobs in the U.S. The industry provides work to over 20 million people. And 2 million more jobs should get added in the next decade.

Again, this isn’t slowing down any time soon. And it’s all because Americans are getting older. As baby boomers continue to age, there will be roughly one in five Americans who are over the age of 65 by 2030.

That’s why health care is always on my radar. Not much can outpace it. No economic event can shatter it.

So How Can We Profit?

And because of the pandemic panic, Wall Street is giving smart investors a great chance to get in.

There’s a potential 100% or better gain baked into this opportunity over the next five years.

That’s why I devoted my latest Alpha Investor Report issue to it. In fairness to my subscribers, I can’t tell you which stock I recommended in this sector.

But I have mentioned another stock in Winning Investor Daily in the past. It’s not in my Alpha Investor Report model portfolio, but it’s still a great way to capitalize on the health care trend.

The Vanguard Healthcare Index Fund ETF (NYSE: VHT) is an exchange-traded fund (ETF) that holds a basket of health care-related stocks. It’s a good way to get exposure to the health care sector. This will be a long-term trend.

You want to be invested today.

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