Is the Healthcare Industry Recession-Proof?
There is no doubt the world has changed. Those that change with it will prosper and those that don’t will simply be left behind. This phenomenon has been the same since the beginning of time. From the shoulders of giants we learn, grow and expand. The wheel, philosophy, mathematics, urbanisation, the growth of e-commerce to name a few have changed the world.
One aspect of life that doesn’t change is that of our health. It’s very hard to put a price on our health and that of those around us. Whether Amazon is over $3,000 USD per share or not doesn’t affect a simple fact. When your health is poor you will do whatever you need to in order to get the best and easiest treatment you can afford and be surrounded by friends and family.
Are health care related investments recession-proof?
While the demand for health care continues to increase with general ageing of the population, increase in longevity the declining health as a result of affluence from more sedentary work and better information in terms of improving health. Government spending in this area has been neglected in the past, but we are seeing modernization, replenishment and general growth in this sector from both Governments and the private sector.
Finally from a macro point of view, we are witnessing a long term revolution in health focus, in terms of the general approach to health, how services are delivered, improvements in R&D and the widespread benefits of connectivity that technology brings. The expectation is that this revolution will improve health outcomes whilst reducing the overall cost of health.
So there is a strong argument for health care related investments whether directly in the form of hospitals, health services, R&D and pharmaceuticals or in related investments like health care properties or equipment, as all these are showing strong growth and should hold up well in most market cycles including recessions.
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