How to Profit From the Myth of Overpopulation: Johnson & Johnson (JNJ), Pfizer Inc. (PFE)

The same bleak outlook can be seen in Russia and many countries across Europe, particularly Spain, and economists are now warning of a coming catastrophic economic collapse. Some may argue that immigration can, and will, combat this problem — but immigration, even in the U.S. is slowing. Plus, even in places where immigration remains high, there is a decline in birth rates; the birth rate for foreign-born women plunged 14%, according to the Pew Research Center. So what does this mean for investors?

How to benefit
The demographic shift is happening. It has been for some time now, and it will create economic problems in the future. However, by investing in companies that cater to aging consumers, savvy investors can take advantage, and even benefit, from this shift. Two such companies are Johnson & Johnson (NYSE:JNJ) and Pfizer Inc. (NYSE:PFE). Johnson & Johnson (NYSE:JNJ) is a multifaceted company with a number of subsidiaries like DePuy, which specializes in orthopedics and joint replacement products, and Cordis, which specializes in cardiovascular and coronary artery products. Pfizer Inc. (NYSE:PFE) is the maker of Celebrex, one of the most popular rheumatoid arthritis drugs on the market. Joint, heart, and arthritis problems are some of the most common problems associated with old age. As such, the above companies stand to benefit from increased demand from an aging population.

Another option for benefiting from an aging population is to invest in a health care real estate investment trust, or REITs, such as Health Care REIT, Inc. (NYSE:HCN), Omega Healthcare Investors Inc (NYSE:OHI), and Medical Properties Trust, Inc. (NYSE:MPW). These companies invest in properties like retirement homes, independent living, and hospital buildings. Consequently, their consumer base is aging populations, meaning they are naturally set to benefit from increased demand.

Aging Fool
Birth rates are declining, and the population is aging. Without a shift in this trend, the economy could be headed for trouble. But by investing in companies that cater to a more mature demographic, savvy investors can actually benefit from the increasing median age.

The article How to Profit From the Myth of Overpopulation originally appeared on Fool.com and is written by Katie Spence.

Fool contributor Katie Spence has no position in any stocks mentioned. Follow her on Twitter @TMFKSpence. The Motley Fool recommends Health Care REIT and Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

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