How to Play the "Old Timers Trade"

Aging boomers take over July 22, 2014     How to Play the "Old Timers Trade"   Aging boomers take over The most powerful investing trend in the world Plus: What's behind this rotten stock's performance?   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner You aren't getting any younger... It's no secret. You've heard time and again how the aging baby boomers are warping this country's demographics. Births are dropping, while the ranks of folks cashing Social Security checks grows by the day. Now, big business is set to take advantage of the trend. Just how much older are we getting? Check out the statistics... "Births peaked in the U.S. at 4.32 million in 2007 and declined for five years before leveling off recently. Some 3.96 million babies were born in the U.S. last year, according to preliminary data from the Centers for Diseases Control and Prevention," The Wall Street Journal reports. "The number was up slightly from 2012, but the country's fertility rate dropped to a record low of 62.9 births per 1,000 women of childbearing age. Meanwhile, over 3 million Americans are now turning 65 each year, according to the Pew Research Center." Those 3 million Americans turning 65 every year have caught the eye of companies like Procter & Gamble and Kimberly-Clark. Look no further than the diaper market for proof. While sales of baby diapers and training pants have weakened, sales of incontinence products continue to grow. That's why P&G is jumping back in the adult diaper business after a ten-year absence. Yes, the adult diaper market is surging. The statistics backing up this claim are staggering. Sales of incontinence products have tripled to $1.5 billion over the past 15 years. For mega-cap consumer staples firms like P&G, this means potential sales of more than $500 million in just a few years, one analyst told the WSJ. The geezer trade is now in full effect. Investment candidates in the aging-boomer niche are diverse. You have biotechs, generic drug makers, senior care facilities, consumer staples companies like Kimberly-Clark and P&G that are even altering their advertising strategies to target older people. It's no coincidence that health care stocks and other groups related to this trend are spanking the averages. Health care is the third-best performing sector year-to-date. Back when biotech shares were melting down a few months ago, I told you healthcare stocks could be a safe "hideout" for your trading dollars. That hasn't changed. The Health Care Select Sector SPDR ETF (NYSE:XLV) has gained more than 11% year-to-date. And as I told you earlier this month, the Affordable Care Act and an aging population both remain big themes in the long-term.         CONFIDENTIAL: READ AND DESTROY We've recently uncovered little-known internal documents from food companies… files so secret that they're labeled… "CONFIDENTIAL. Read and destroy." They'd hoped you'd NEVER see them… because they reveal shocking evidence of a health scandal that could be making you and your family sick. Click here to see the details and learn how to protect your family.           Rude Numbers Targets, Predictions and Wild Guesses   $28 billion in market value has disappeared from the Russian Micex since late February, according to Bloomberg. Additional sanctions could cause more economic pain in Russia in the coming months... 25 new all-time closing highs have been posted by the S&P 500 so far this year. Despite calls for a correction, the market continues to push higher... $104.50 buys a barrel of crude this morning. Oil continues to spike on Middle East and Russian tensions... $1,312 marks the spot for gold futures today. The yellow metal is holding steady above $1,300. It's dropped about $2 in early trading this morning... 1,974 is where you'll find S&P futures this morning. Stocks are set for a strong open to begin the trading day...     Rude Trends When to Buy... When to Sell   "With palladium doing well this year, any idea why North American Palladium is so rotten?" asks an astute reader. Good question. I've liked palladium for a while now. The metal is in the midst of a beautiful uptrend. And occasionally, I'll dig around for new palladium-related trading ideas. Inevitably, I'll stumble onto North American Palladium Ltd. (PAL). Behold the amazing performance of PAL as it slowly creeps toward zero: It doesn't take a top analyst to see that things aren't great over at North American Palladium. Every time I see this chart, I recoil in horror and move on to my next option. It appears that PAL is having some serious issues--mainly paying back some hefty debts. But you don't even need to know about any of that. The chart says it all. Even though palladium is sitting close to new highs, you should avoid this miner at all costs (unless you're a fan of throwing money away). [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   A Little-Known IPO Hint: How to Get In Before Stocks Go Public! Bigger than Benghazi, the IRS and the NSA Scandals... Combined? "Hidden" Treasury Document Plans to Devalue Your Money     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. 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