Follow Best Investments Alerts Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
Looking ahead to 2020, investors have good reason to move toward safer investments. Economic headwinds like slowing growth and trade uncertainty continue to weigh on markets at a time when stocks trade at all-time highs.
One of the most secure ways to invest your money right now is in assets that cater to industries with rock-solid fundamentals - ones that can weather any economic storm on the horizon.
For this, look no further than healthcare facilities that cater to older Americans.
Over the next two decades, the U.S. senior population age 75 or older will double, according to the U.S. Census Bureau.
Our top REIT for 2020 could climb to five times its current price, and shares yield a solid 7.9%. Click here to get the Best REIT to Buy for 2020…
This simple fact puts companies in charge of critical services like healthcare, lodging, outpatient clinics, and other medical care in the driver's seat.
In fact, the National Investment Center for Seniors Housing & Care states that the United States is well undersupplied when it comes to these facilities.
One of the key demographics in this space is Americans over the age of 80. According to the Milken Institute, the average per-capita spending on healthcare by Americans over 85 is $32,900 per year. For comparison, the average American only spends $13,700.
Meanwhile, housing for this demographic remains in short supply.
A new NIC study shows that existing supply of 80-plus housing sits at 1.592 million units. By 2040, the United States needs to see the number of units increase by 986,000 in order to meet expected demand. By 2030 alone, America needs to add 881,000 new units.
With healthcare spending on the rise and demand for facilities expanding, this industry looks recession-proof heading into the next decade.
So today, I'll show you the best way to tap into these trends - and the name of the best REIT for 2020 and beyond.
The Best REIT in Healthcare for 2020
Investors can speculate on the next "life-saving" drug or device that might prolong life by a few weeks to a year. But those types of investments are vulnerable to volatility and likely trade at nosebleed multiples in today's market.
Instead, investors should be looking for better ways to tap into healthcare and secure steady, reliable income to weather the storm.
For this, look no further than real estate...
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.