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Jeff Reeves
March 10, 2011, 12:01 a.m. EST
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By Jeff Reeves
ROCKVILLE, Md. (MarketWatch) "” Smarter men than I have noted that a successful long-term investment relies on demographic trends as much as a company's balance sheet or management.
Shifts in shopping habits, population and technology are big drivers for some of the biggest names on Wall Street, from veterans like Warren Buffett to the next generation of traders like James Altucher.
As lives get longer, modern medicine becomes increasingly valuable to the elderly. China's middle class and cities are growing at breakneck paces. There are a lot of hungry people in the world creating massive strain on food supplies and significant inflation.
These are just some of the trends that define our current global economy, and thus define the stock market. It's not rocket science "” just pay attention to the headlines, and then apply what you've learned to your investments.
To show you what I mean, here are seven demographic shifts under way in the global economy right now "” and the investments that could help you prosper as a result.
Agflation headlines abound these days. You know things are bad when it's seen as an improvement that India's food prices are up "only" 10% over the previous year.
The shortage and subsequent inflation across everything from onions to palm oil to corn can only logically be fixed one way "” by growing more food. That's where fertilizer powerhouse Potash Corp. /quotes/comstock/13*!pot/quotes/nls/pot (POT 54.37, -1.48, -2.64%) , biotech seed giant Monsanto Co. /quotes/comstock/13*!mon/quotes/nls/mon (MON 67.53, -1.87, -2.69%) and farm-equipment icon Deere & Co. /quotes/comstock/13*!de/quotes/nls/de (DE 87.99, -1.83, -2.04%) come in, or the diversified Market Vectors Agribusiness ETF /quotes/comstock/13*!moo/quotes/nls/moo (MOO 53.13, -1.38, -2.54%) . What's more, not only will higher crop yields reduce prices and feed more people, but also it is actually in the best interest of farmers to produce more. According to new data released to Congress by the University of Missouri this week, soaring food prices should result in record farm income during 2011. So growing more means selling more at higher prices.
Whether you are a member of the apocalyptic camp that predicts we will all be trading in gold bullion and canned goods by 2015 or whether you are just a regular Joe who sees evidence of rapid inflation (see item No. 1) and is looking to hedge your bets, precious metals make sense right now.
Western nations haven't reached a united front on the use of no-fly zones in Libya.
Specifically, physical gold or silver investments like the SPDR Gold Trust ETF /quotes/comstock/13*!gld/quotes/nls/gld (GLD 137.78, -1.63, -1.17%) or the iShares Silver Trust ETF /quotes/comstock/13*!slv/quotes/nls/slv (SLV 34.42, -0.85, -2.41%) make sense. The bottom line is that as long as fear and inflation are moving up, gold and silver will too. Read about an investment worth 150 elephants' weight in gold on InvestorPlace.com.
If you're looking to get in on the next big blockbuster drug to will treat Alzheimer's or cancer, biotechs are your best bet. But if you're looking to cash in on already proven medications that are simply getting cheaper and more readily available, consider generic drug powerhouses Perrigo Co. /quotes/comstock/15*!prgo/quotes/nls/prgo (PRGO 76.57, +0.03, +0.04%) , Dr. Reddy Labs /quotes/comstock/13*!rdy/quotes/nls/rdy (RDY 34.92, -0.62, -1.74%) and Teva Pharmaceutical Industries /quotes/comstock/15*!teva/quotes/nls/teva (TEVA 49.41, -0.69, -1.38%) . While you may recognize Teva's name on some of your prescriptions in the U.S., don't discount Perrigo's Mexico operations or India powerhouse Dr. Reddy. An emerging market footprint could help these generic drug stocks benefit big time by finding a broader customer base to serve.
HCA Holdings Inc. has its first big healthcare assignment: testing the heart rates in the private equity industry.
11:46 a.m. Today11:46 a.m. March 10, 2011
"Dow down 220 as selling intensifies following report of Saudi violence; oil declines abate http://on.mktw.net/h4J3Wj" 2:00 p.m. EST, March 10, 2011 from MarketWatch
"Police open fire on protesters in Qatif, Saudi Arabia: report http://on.mktw.net/h8lKNz" 1:40 p.m. EST, March 10, 2011 from MarketWatch
"#Trade gap widens 15.1% in January http://bit.ly/dWOTBl" 1:22 p.m. EST, March 10, 2011 from MarketWatch
"General Motors Co. CFO Chris #Liddell will step down on April 1 http://bit.ly/hvgjrO" 12:53 p.m. EST, March 10, 2011 from MarketWatch
"$SBUX, Green Mountain brew K-Cup pact http://bit.ly/hWIBLr" 12:32 p.m. EST, March 10, 2011 from MarketWatch
On Mutual Funds
Bull-market birthday is no reason to invest
Political Capital
Deficit gang warfare in the Senate
Tech Tales
Videogame industry is at a crossroads
Strength in Numbers
Seven demographic trends to buy now
Vital Signs
Fighting diabetes, other diseases, with live cells
Wall Street Irregulars
The baby-boomer bull is back
Two years in, the rally is alive and strong
Editor's View
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