Warren Buffet made his money by investing in things in your refrigerator or on your body. Whether it’s Fruit of the Loom or Heinz Ketchup, one of the soundest ways to invest is to put money to work in goods and services that are in demand. Preferably, increasing demand.
Last week, the Conference Board released a demographics study on the U.S. and came up with some things they think Americans will be spending money on in the next decade. One may be a bit obvious. Think about it….we’re living to 90 now.
You guessed it. Healthcare.
“Over the next decade, health spending will grow 15 percent, due to demographic trends alone, compared with 8 percent for total consumption spending,” says Gad Levanon, a chief economist with The Conference Board and an author of the report. “More so than any other category, health care spending is concentrated among the oldest households. Long-term care, in particular, is likely to experience even more dramatic growth of 20-25 percent due to demographic trends alone.”
Long term investors will want to consider anything that has to do with aging and with people spending more time in their homes, including time spent doing activities at home like exercising.
The Conference Board singled out spending in categories such as household maintenance, gardening, reading, and pet care all likely to grow above the normal rate of consumption.
What will Americans spend less on? Men’s clothing, restaurants, and rental property for some strange reason, the Conference Board study shows.
Education spending will also take a hit. Since the bulk of education sector spending is concentrated within the 5–24 age range, which will essentially remain unchanged from 2015–2025, the industry is likely to see slow growth rates in the coming decade. Related spending on school supplies and youth clothing will suffer as well, reporter authors say.
The report titled “The Impact of Demographic Trends on Consumer Spending” was released on Feb. 17. It looks at the impact of U.S. demographic trends will have on a broad array of consumer spending habits over the next decade.
For copies of the report, send an e-mail to joseph.diblasi@conference-board.org or courter@conference-board.org.
RIA Channel will host a webcast this week on demographics titled “Economic Growth Waves and Surprises Ahead,” featuring Advisor Revolution. This free webcast for financial advisors will take place on March 2, 2017 also offers CE credit. REGISTER NOW. Conference Board Releases Demographics Study Results
Where we will spend our money over the next decade?
Warren Buffet made his money by investing in things in your refrigerator or on your body. Whether it’s Fruit of the Loom or Heinz Ketchup, one of the soundest ways to invest is to put money to work in goods and services that are in demand. Preferably, increasing demand.
Last week, the Conference Board released a demographics study on the U.S. and came up with some things they think Americans will be spending money on in the next decade. One may be a bit obvious. Think about it….we’re living to 90 now.
You guessed it. Healthcare.
“Over the next decade, health spending will grow 15 percent, due to demographic trends alone, compared with 8 percent for total consumption spending,” says Gad Levanon, a chief economist with The Conference Board and an author of the report. “More so than any other category, health care spending is concentrated among the oldest households. Long-term care, in particular, is likely to experience even more dramatic growth of 20-25 percent due to demographic trends alone.”
Long term investors will want to consider anything that has to do with aging and with people spending more time in their homes, including time spent doing activities at home like exercising.
The Conference Board singled out spending in categories such as household maintenance, gardening, reading, and pet care all likely to grow above the normal rate of consumption.
What will Americans spend less on? Men’s clothing, restaurants, and rental property for some strange reason, the Conference Board study shows.
Education spending will also take a hit. Since the bulk of education sector spending is concentrated within the 5–24 age range, which will essentially remain unchanged from 2015–2025, the industry is likely to see slow growth rates in the coming decade. Related spending on school supplies and youth clothing will suffer as well, reporter authors say.
The report titled “The Impact of Demographic Trends on Consumer Spending” was released on Feb. 17. It looks at the impact of U.S. demographic trends will have on a broad array of consumer spending habits over the next decade.
For copies of the report, send an e-mail to joseph.diblasi@conference-board.org or courter@conference-board.org.
RIA Channel will host a webcast this week on demographics titled “Economic Growth Waves and Surprises Ahead,” featuring Advisor Revolution. This free webcast for financial advisors will take place on March 2, 2017 also offers CE credit. REGISTER NOW.