Monday, August 13, 2012

LKY's National Day 2012 Hint Takeaways

Year after year the government's national message to the public would always involved mainly the economy status of the state. Not this year. This year main takeaways from LKY's national day message is clear and precise. "Get Married, have babies...Otherwise, the country will fold"

Over the past few years, the government has tried ways and means to raise the nation's falling birth rate but to no avail. It currently stands at 1.2, which obviously is well below the ratio needed to replenish more Singaporeans.

Is the government going to offer more incentives to couples to encourage them to give birth? Does a 6 month maternity leave and/or paternity leave will entice couples to have babies in the near term? It obviously is one of the toughest social issue the nation have to face in the next decades. Not only the government has to tackle the social living costs of doing so, but it has also triggered many Singaporeans to challenge the government's intention of being able to support the cause of saying so.



With an ageing population dilemma irreversible at this point in time, it will impact and cause a rise in the public health care burden which will led to assessment of new health technologies and hospitals demand for the public. This could be a silver lining for investors. Hospitals, drugmakers and insurance companies should benefit most from this social issue within the next decade as we will potentially see more and more debate arising both from the government and the public. If you have not thought about investing in a healthcare industry at this point in time, it might be time to consider having at least one in your portfolio. Some of the more popular names that are listed in SGX which I like (i.e if you are planning to invest SG stocks) are First Reits and PLife Reits*. They may not be directly involved in the medical aspect of the schrotum, but these are nevertheless one of the better Reits around in a healthcare industry. If you are looking at stocks in a healthcare industry globally, you are no less spoilt for choice with stocks such as Abbott Laboratories, Pfizer and/or JnJ leading the pack of group.

*Plife Reits has undergone a few days of falling prices since its XD last week. As there are no announcements updates on PLife Reits, I would attribute the falling prices to after XD effects and a surge in STI, causing the more defensive sector to underperform in this case. I am currently long PLife Reits with 7 lots, which include the 1 lot I have added today.

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