Ideas for Investing In Healthcare

By  //  June 30, 2022

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While it may have been considered more of a defensive investment in the past, it’s now at the forefront of technological innovation. Because of this, it offers unprecedented growth opportunities that a lot of investors can take advantage of within the market cycle and estate planning solutions. This growth is only going to increase exponentially as more and more populations begin aging.

However, the pandemic and its ramifications have only highlighted the importance of the healthcare industry and how much potential there truly is. The amount of spending within the healthcare industry currently represents nearly 10.5% of global Gross Domestic Product and it’s expected to continue growing by 5% annually.

It’s expected to reach a total market value of a whopping $15 trillion by the year 2028. Both acquisitions and mergers remain a key theme that is driving expansion within the industry with 2019 being the highest on record when it came to making deals.

There has been a lot of emphasis on improving quality of life, increasing life expectancy, and reducing a lot of the common yet preventable killers. With that being said, there is a lot more work to do and more investment is required to do so. Only 50% of the entire world population is currently covered by essential services and as many as 100 million people per year end up falling into extreme poverty because of sky-high healthcare expenses. The entire industry is incredibly diverse allowing investors to have the opportunity to get exposure in different ways.

You can find companies specializing in different fields including but not limited to biotech, life sciences, and more. There is plenty of companies with good fundamentals and there are a lot of companies that have excellent sales and earnings strength relative to some of the other industries. When you look into the future, you can see some risks primarily because of the complex regulatory systems in the United States.

The U.S accounts for nearly half of the global healthcare spending. However, Asia is the quickest growing region in the global healthcare landscape and the middle class is increasing annually. Thus, going for companies that are taking a more global approach would be ideal to get the most out of your healthcare investments.