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David Stafford
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Student of markets, enjoys following their course.
My book:
Around the World in Several Pieces
  • Hi Ho Hi Ho Its Off To Floo-Rida We Go! 0 comments
    Aug 21, 2012 12:50 PM | about stocks: MPW

    As the US's population shifts into pseudo-Japanese mode, over the coming 30-40 years, some are expecting to see more and more individuals entering retirement.

    http://money.usnews.com/money/blogs/On-Retirement/2012/03/23/the-baby-boomer-number-game

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    Old age brings with it many gifts, according to psycho-sociologists it may bring with it a maturation of one's views on life. An understanding of the values of one's social role, and continued social activity enriching one's local community.

    (Paper that relates to this social-health-aging phenomenon;

    http://hsb.sagepub.com/content/52/4/430.abstract )

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    Regardless of social ideals, other things come with age. Such as health problems, and extended visits to the hospital. High dividend stocks such as ARR look good for the short to mid term, given the implausibility of the Fed raising rates etc.

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    However, when it comes to the long haul, MPW and its kind are really a gold mine.

    If the children of today were permanently obsessed with Kazoos. When they reached adulthood, Kazoo manufacturers would be expected to rake in windfall sales revenues based on the coming of age and purchasing power of this demographic based love of kazoo(hypothetical, discounting temporary nature of trends etc)

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    In a way medical services, and the reits that invest in them are kind of like beacons of sage investment waiting down the road of life, that some will realize sooner than later.

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    These reit's will almost undoubtedly experience rising demand for their services for ages and ages hence. Current projections show the number of retired Americans increasing as a percent of population all the way to the year 2050.

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    Thus, these medical reit plays, and especially acute care plays like MPW (arguably), will presumably not see demand for their products drop off, regardless of cycle, regardless of trends etc etc.

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    In the next 40 years the only thing people holding a passive investment like this might need to keep an eye on is government policy, and as we all know, government policy tends not to change while one steps away from one's trading platform to grab a can of soda.

    ________________________________________________________________

    Thus, MPW and its ilk seem like a continuing good investment.

    Themes: Demographics, Acute Care Stocks: MPW
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