From the Daily Reckoning
BY ZACH SCHEIDT
And we’re finally ready to weigh in with OUR TAKE on the ObamaCare vs TrumpCare debate.
We’ve left no stone unturned. And today we’ll show you everything, including our list of LOSERS and WINNERS.
With debates raging in Washington, let’s take a look…
And as you can imagine, the new TrumpCare bill proposes some major policy changes to existing ObamaCare…
This means potentially HUGE shakeups in healthcare investments- and as our research shows, namely, the downfall of health insurers…
Since ObamaCare became law in March 2010, health insurance companies have been the big winners:
- UnitedHealth Group (UNH) up 506%
- Aetna Inc. (AET) up 449%
- Humana Inc. (HUM) up 407%
The reason for the massive gains?
Believe it or not, the most controversial part of ObamaCare was the catalyst: The Individual Mandate.
This mandate required all individuals to acquire health insurance in one way or another… Or pay a fine.
To offset high insurance costs, government subsidies were given to facilitate low income families.
These families then signed up for coverage with private insurers, who have since continued to rake in Uncle Sam’s subsidies- sending the sector skyrocketing.
However, under TrumpCare, this is all set to change.
President Trump has been a vocal critic of the individual mandate, which means under TrumpCare, people could potentially forgo health insurance without fear of being fined.
In addition, those that keep health insurance will have their government subsidies lowered substantially… Take a look for yourself with these examples from across the country:
- Subsidies in Chattanooga, Tennessee are projected to fall by 53%
- Subsidies in Yuma, Arizona are projected to fall by 61%
- Subsidies in Allentown, Pennsylvania are projected to fall by 42%
This spells grave danger for insurance companies, who have recently relied on increased customers to boost both profits and share prices.
The bill hasn’t been signed into law yet. But if it does, health insurance stocks should watch out below.
But, while the debate rages on, I didn’t want to leave you empty handed. That’s why my team and I looked at the WINNERS in this situation…
Here’s the sector primed to surge:
This idea came to me as I was leaving our headquarters in Baltimore, Maryland…
We’ve all been there before– slouched over driving through bumper-to-bumper traffic.
This time I was crawling through the prestigious Johns Hopkins Hospital campus– an area constantly under construction.
When I wasn’t being cut-off or rerouted, I’d admire the sky-high cranes and newly constructed buildings. I had a front-row seat to Baltimore’s major healthcare build-out.
But the story I want to share with you today is much bigger than that…
This same, HUGE healthcare build-out is happening all over the U.S!
Texas’ $15.8 billion medical construction pipeline is second in the nation -Dallas News
Health-care building boom underway in Colorado Springs area -The Gazette
Booming NYC hospital construction sector expected to reach $8.2B from 2016 to 2018 –Construction Dive
“$97 billion in projects for new hospitals” –Healthcare Finance
You get the point. The only thing heading higher than healthcare costs are the high-rise buildings themselves!
That’s because with a bow-wave of American baby boomers heading to hospitals and nursing homes across the country, there’s an enormous opportunity staring us in the face.
Best of all, this opportunity — and the companies behind it — should continue to skyrocket no matter what happens inside the D.C. beltway.
The companies that will benefit the most from America’s HUGE healthcare expansion are in a profitable niche of the market. I’m talking about Healthcare REITs (real estate investment trusts.)
These companies own the facilities where the healthcare businesses operate.
And right now there are many reasons to be attracted to this industry:
- Property values are increasing around the country
- An aging population means larger demand for healthcare facilities
- REITs are required to payout at least 90% of earnings as dividends BY LAW
Below are three publicly traded REITs that I believe should be added to your portfolio.
If you are one of my paid-up Lifetime Income Report subscribers, you’ve known about these for quite some time now.
Welltower Inc. (HCN) The strategy of this industry leader is to acquire healthcare properties in affluent areas and then partner with some of the best operators to run the facilities. Welltower properties are 3 years younger than the industry average and the stock pays a 5% dividend.
HCP Inc. (HCP) They currently have $820 million committed to new ground-up developments- preparing this company to better serve America’s aging population. In addition, the company pays an attractive 6% dividend.
Medical Properties Trust (MPW) This REIT is time tested. MPW has survived the financial crisis but still trades at a 15x P/E ratio, well below the industry average of 24x. Include a 7% dividend that has continuously been increased over 5 years, and MPW makes a solid investment.
The way I see it America’s HUGE healthcare expansion is an unstoppable trend. And regardless of which way the dollars fall in Washington, these healthcare REITs will continue to spit cash.
Now’s your chance to get in and collect a nice dividend along the way.
In the coming days, I’ll continue to scour the markets for new Trump-era opportunities. This opportunity-laced political environment is bound to shake things up on Wall Street — leading to profits for alert investors.