|
An aging population and public awareness of the
advantages of preventative health care are prime motivators for drug
manufacturers, medical equipment producers, and care providers, among
others, to continue to develop and market new, more effective health
care-related products.
In a study by the Pharmaceutical Research and Manufacturers
of America, it was shown that people age 65 and older use three
to four times the amount of prescription drugs used by people
in their 30’s. And as the number of people in the United
States who are age 65 or older increases approximately 17% by 2010,
health care companies and especially pharmaceutical manufacturers
have the opportunity to benefit from this aging population.
Americans are already spending a higher percentage
of their income on health care. We believe that additional
related areas such as biotechnology, outpatient care and home services
will also increase in demand as we live longer and more active
lives.
Disclaimer
Investment results will vary. These
examples are used to illustrate why the Advisor utilizes
these industries as the core of the asset allocation
model, and is no way intended to suggest that the fund
performance will replicate the performance of these
industries.
There are risks involved with investing in these industries
which may be adversely affected by changes in economic
conditions as well as legislative initiatives, all of
which may impact the profitability of companies in this
industry.
|
