”The recent run-up in financial stocks appear to be just another head-fake”... but where is the silver lining in all this?

Implications: What the subject article is telling us, there is a lot of fools gold out in the market. As my previous post suggested, Wall St. can not be trusted. So this leaves investors in a real quandary as to where to plant their money. Knowing this and understanding that corporate earnings are under major stress, will investors go back to seeking or better said chasing unrealistic returns or will conservative investment take hold? What should investors be on the look for, the proverbial what’s next...

Analysis: Further confirmation of the detriorating economics conditions continue to make headlines on the business wires.

More layoffs have been announced within the financial sector of over 90,000 in April on top of almost 57,000 in March much of which is related to high price of gasoline; Home Depot is closing 15 location for the first time in its history costing another 1300 jobs, and the venerable Warren Buffett has stated that he now believes the current economic downturn, will be longer and deeper than he previously thought.


As the economy continues its downward spiral, the real question investors must be asking themselves is where to invest their money. As having survived 5 major downturns there are insights into where one can invest. In commercial real estate, if investors are willing to take a long term position, and realize lower but more consistent returns there are properties that will be worth taking a hard look at. The clue is to ask what products and services will be in highest demand taking into account the United States demographics and how will those factors impact the future.


The answer lies in the aging Baby Boomer Population the largest single demographic category in the United States. What will their needs and wants be going forward? Will certain geographic areas of the United States be more attractive than others for this group? Keep in mind this group does not act like their parent’s generation. This generation will remain as active and involved until the bitter end. This demographic will not go silently into the night.          


Therefore here are some of the categories to be on the look out for, and the related commercial real estate that will service these industries and subcategories in some manner, shape and/or form. These are in no particular order of importance or ranking.
1.Long Term Care facilities

2. Pharma Industry et al.

3. Medical Device mfg and supplies

4. Senior Housing, “Life Style” and retirement facilities that allow for grand kids

5. Health & Fitness (Including Food/Diet)...Boomers have become very health conscious. Remember 50 is the new 40.

6. Drug Store sites and existing occupied stores such CVS, Walgreen’s, Rite-Aid etc. Boomers need to fill their Rx.

7.Wholesale Clubs...everyone is looking for bargains and to lower costs for food and other staples.

8. Recreational/Travel formats for baby boomers, such as golf, RV, Travel related to older folks. Upscale resorts.

9.Financial Planning and Estate planning...haven’t you seen the Dennis Hopper “Ameriprise” commercials?

10. Banks...Small to medium size banks who are focused on small-medium sized businesses. (They avoided the current mess)

11. Luxury Automotive-Hybrids...Boomers are on the top of the economic food chain and have a green consciousness.

12.  Adult Education...Boomers are always interested in more learning and re-inventing themselves.

13.Tech Colleges...with the cost of traditional college over the top, specialty education will be attractive. High tech needs repair and maintenance no matter how bad the economy....as a matter of fact; most companies and people will look to extend the life of their Hi-Tech gadgets, especially their computers. This is a good avenue for the Shadow Boomers (Kids of the Baby Boomers, another large demographic)...its hard to juggle college costs with starting second careers as self-employed business owners.

14. Second Career Counseling...with the current crop of lay-offs Boomers will want or HAVE to do something else. They'll need help figuring it out.

15.Franchise Businesses as Second Careers, especially service oriented ones, not food related.

16. Environmental enterprises (Green Initiatives) Remember it was the Boomer Generation that started Earth Day in the Early 1970’s.

17. Internet...with the cost of gasoline, why travel if you can purchase products and services on-line.

18. Data Server “Hotels”...the Internet is not dead, its more robust than ever, greater demands for computing/network capacity.

19.In-home entertainment electronics and accessories. Boomers love to party and entertain and its cheaper than going out. Yes I know CompUsa is gone and Circuit City is in trouble, but Best Buy is doing very well.

20. In-Home Fitness...again why drive when you can exercise at home. Equipment mfg, distributors, and stores. Look at Ballys' and you see this trend.

21.Civil Engineering/ Construction directed towards infrastructure repair, replacement, and new. Consequently companies that supply pipes, concrete, steel etc.  


As I am sure I have missed some, you get the picture...good luck in your investment endeavors.