Today, I’m going to share with you a health care investment you’ve probably never considered… one that’s set to grow in step with the aging population, returning hefty yields along with steady capital growth. Let me explain…

Today, health care accounts for 15% of U.S. spending, about $2.2 trillion. That already staggering number is set to skyrocket in the next decade as the waves of the “silver tsunami” wash ashore.

You see, regardless of how healthy you are as you age, the majority of your lifetime medical expenses – approximately 80% – will come due in the final years of your life. As you would expect, a large portion of these dollars will flow to hospitals and assisted-living centers. So, as an investor, you might be tempted to buy the companies operating these medical centers and nursing homes. It’s not a bad idea… But I’ve got a much better one…

The safest way to play this megatrend is to buy the landlords… the companies that own hospital buildings, medical offices, and other health care facilities. Here’s why…

———- Advertisement ———-
Why We’re Doubling the Price of the #1 Research Service in the Industry

Beginning June 10th, one full year of the best-performing research advisory we publish will cost $4,000.

Click here for more information.
————————————

REITs, by law, must pay 90% of their income to shareholders. In return, these companies pay little to no taxes. Health care REITs lease their buildings to medical-service providers or “operators,” who sign 10- to 20-year leases and are responsible for all property taxes, utilities, and expenses.

So health care landlords are practically immune to rising energy costs. In addition, automatic rent escalators – about 2%-4% annually – protect landlords from inflation.

And people get sick and go to the doctor no matter what the economy is doing. That’s why medical stocks like health care REITs are the ultimate “defensive” stocks… investments that perform well regardless of tumultuous economic cycles.
Of course, the words “real estate” now make the average investor cringe… Nearly every REIT started to tumble early last year, and health care REITs were no exception. But consider this: While REITs in general have fallen another 15% in the last 12 months, health care REITs are about flat. And that’s not counting their 6% dividend yield, which is 50% higher than the general REIT industry.

Now take a look at this chart…

This plots the one-year performances of the Dow Jones REIT index (black) and bellwether health care REIT HCP Inc (blue). HCP is the market’s largest, most diversified health care REIT. And it’s led the charge into laboratory space in biotech hot spots like San Francisco and San Diego.

HCP is up about 20%, including dividends, since I introduced Growth Stock Wire readers to the idea of collecting “health care rent checks” in July last year. And it’s up 9% since I revisited the opportunity in November, while the S&P is down 4%.
HCP is one of four health care REIT recommendations I’ve made to my paid subscribers. Including dividends, we’re up an average 22% in just one year. But with America’s 60+ club adding 8,000 new members daily, I think this is just the beginning.

Good investing,

Rob Fannon
Source:The Safest Way to Profit as the Boomers Retire

Buenos Aires, Argentina June 5, 2008

In 2007, the strong appreciation of the Chilean peso had been the central preoccupation of the Chilean businessmen. In the last few months, active policies initiated by the Central Bank of Chile, coupled with a fall in the international price of copper and a strengthening in the worldwide value of the dollar have noticeably depreciated the value of the Chilean peso. In fact, the Chilean peso is the currency that depreciated the most against the dollar in the month of May.

This depreciation in the rate of exchange must have created a certain level of calm for Chilean businessmen. But while the exchange rate adjusted to the situation, other negative factors attacked the way in which businesses operate. For this reason, businessmen were unable to take full advantage of the improvement in the rate of exchange.

Inflation is perhaps having the worst effect on the Chilean economy at the present time, with a year-on-year rise of 8.3% for the month of April. Meanwhile, the Central Bank of Chile has as its goal an increase of only 3%, with a margin of 1% either direction. While the rate of inflation has been harming the Chilean economy, it has been partially offset by an improvement in the overall competitiveness of the economy.

The issue of inflation is causing Chilean monetary policy to move in a more restrictive direction for the next few months. This is why on May 8, during the last meeting of the Council of the Central Bank of Chile, it was discussed whether to maintain or raise the interest rate from its current level of 6.25%.

Even worse, the price of fuel has continued to rise and it is effecting the costs of production. The price of fuel is continuing to rise, and has already reached its highest level since 2001. Yesterday 120,000 trucks were lined up on a highway in a show of protest over this increase in the price of fuels. The government of Chile had injected $1 billion to create a Stabilization Fund for Fuels. However this has not persuaded the truck drivers to halt their protests.

Chilean businessmen are pessimistic, and with good cause, for they are finding themselves in a time of inflation while at the same time the Central Bank is insinuating that an increase in interest rates would adversely affect internal demand. And to make matters worse, Chile’s problems regarding power have been aggravated in the last few days by the cancellation of gas shipments from Argentina.

It is for that reason that business confidence finds itself at a historical low point in Chile. In fact, according to the Monthly Indicator of Business Confidence (IMCE), the perspective for commerce, construction, industry and mining fell to 53.4 points in May, the lowest level for that month since this registry was created. Logically, the most pessimistic area is the industrial sector for which indicator IMCE showed a value of 47.2.

Nevertheless, in spite of the general pessimism of businessmen, one can still find companies with good prospects for growth. Such is the case with the Empresa Nacional de Electricidad SA, (NYSE: EOC). During the first quarter of this year, ENDESA Chile reported earnings of $77,649 million (U$S 160 million) which represents a year-on-year variation of 44.5% (although principally due to increases that were not the result of operating costs).

Although the operating costs of ENDESA Chile have been affected by the low water levels and the high amount of fuel purchased in Chile, adequate commercial policies and the emergence of highly efficient stock portfolios have created a situation offsetting the effects of those factors somewhat. And all of this allows ENDESA Chile to be in a suitable position not only to face its next challenges, but also to transform them into opportunities for growth.

ENDESA is initiating diverse projects of investment that are mainly in Chile, Colombia and Peru. Also it has planned investment projects in Argentina.

In the middle of January of 2008, ENDESA Chile’s San Isidro II power station closed its combined cycle with a total power load of 353 MW. In 2009, once liquefied natural gas (LNG) is available in Chile, the plant will reach a total production level of 377 MW. The projected figures for the early portion of 2008 serve as an endorsement of Chile’s local electrical production ability. Another important contribution made by ENDESA to Chile’s power supply for the next few years is the installation, this past March, of the N°1 unit of the Taltal power station. This station has a capacity of producing 120 MW of power, using a diesel engine. Additionally, ENDESA is participating in the initiative of the Government to diversify the electrical grid through a project entitled GNL Quintero.

In January of this year, ENDESA signed a contract in Peru with Siemens Power Generation, to install a turbine that produces 183 MW of power in Santa Rosa plant. This project required an investment of approximately U$S 90 million. In Colombia, ENDESA is considering bidding for a public contract for energy and power programs for this year in that market by means of the development of a hydroelectric power station, capable of producing 400 MW, in Quimbo located upstream from the Betania Station. In Argentina, through its branches, Endesa Costanera S.A. and Hidroeléctrica El Chocón S.A., the company has realized an investment of U$S 160 million, that includes a U$S 42 million loan. This means ENDESA has a participation level of 21% of the thermoelectric societies of José de San Martín S.A. and Termoeléctrica Manuel Belgrano S.A. (with each of them producing combined cycles of 800 MW each).

Additionally, ENDESA Chile is a company that has a strong commitment regarding the environment through its development of projects using non-conventional renewable energies (ERNC) through its ENDESA branch Echo. It has a wind power-generating park named Canela that has been in commercial operation since December of 2007 that contributes 18.15 MW to the Central Interconnected System (SIC), Chile’s national energy grid. Also, ENDESA is committed to the acquisition of adjacent lands for the development of an immediate extension of around 60 additional MW to the park.

ENDESA Chile is a good company to bet on as an investment as a medium to long-term addition to one’s investment portfolio.

We will meet again tomorrow,

Horacio Pozzo

Editor’s Note: in Chile, businessmen seem to have been infected by the same mood as their Argentine colleagues. Although the reasons that affect the growth of both countries are almost the same, the origin of the problems and the search for solutions vary. The recommendation of the week. You can send your comments to me at: paola@latinforme.com

Usually it’s solved by the price of things coming down. But in the case of the housing market, things are a wee bit trickier…

Prices have started to fall, but many still can’t get the mortgage they need to get on the ladder.

I talked about affordability yesterday. I said that from our perspective it doesn’t matter precisely how much house prices fall. We’re confident they will, and our investment strategy reflects that.

Happily, though, a report today puts some numbers into the mix. Apparently, 28% of employed young people can’t afford even their cheapest local properties. In parts of London and the south west, more than 40% are priced out of home ownership.

Hometrack, who published the report, reckons that if prices come down 10%, then the average will drop from 28% to 22.5%. In other words, a fifth of those currently priced out will be able to get their hands on a front door key.

That’s what some (especially those in that magic fifth) would like to see happen. Will it?

Ah, if only economics were that simple! If only we weren’t plagued by all these pesky ‘ifs’ and ‘buts’. But we are. So let’s glove up and pick our way through the brambles…

Affordability is the key. The big thing dampening affordability right now is the tight-as-a-drum credit market. Mortgages you used to be able to get, you now can’t. Those you still can, meanwhile, are more expensive.

Professor Steve Wilcox, the academic who crunched the numbers for the Hometrack report, calculates that the cost of repaying a mortgage rose by 12% last year. But this situation could reverse.

I don’t think it will, however. At least, not enough to reverse the general house price trend, which will carry on downwards.

Today’s report gives us an idea of where prices might end up. But housing market forecasts are ten-a-penny, especially at the moment. I’ve read everything from a predicted 5% drop to an almighty 40% crash.

The trouble is, to put a hard, meaningful number on it, you have to make all sorts of assumptions which themselves are meaningless.

Will the lending market ease up, and if so by how much? How much will would-be buyers rely solely on their own incomes, as opposed to borrowing from other sources, such as relatives?

All these factors make it tricky to obtain a useful forecast for affordability. And then there’s sentiment…

What about those who’ve decided to rent rather than buy? Renting is comparatively cheap right now. But many renters are renting because they don’t want to buy an asset they believe will soon fall in value.

Even if homeownership becomes comparatively less expensive (prices fall, borrowing gets cheaper, or a combination of both), will that fear recede by a proportionate amount? Unlikely. By how much, then, and over what period of time?

Ah, now we’re into the realm of guesswork…

The good news, though, is that it doesn’t actually matter by precisely how much the housing market will fall. Watch the trends; don’t worry about trying to package the world into a neat, numerical model.

The outlook for the UK economy is bleak. It’s not just housing — today we read that the purchasing managers index (PMI) for the service sector fell to 49.8 in May, down from 50.4 in April. A PMI of 50 represents stagnation — neither contraction nor expansion.

So basically, our service industries expanded ever so slightly in April (not good), but contracted a little in May (worse).

You don’t want the fate of your investments to be tightly bound up with the British economy. Because the British economy’s going down. Instead, look for companies making money in expanding foreign markets.

As our research director Theo would surely say: “The UK stock market is your window on the world. Use it!”

The fight for Congo’s mines…

Gold. Copper. Diamonds. Uranium.

Congo has them all, in abundance. And the Chinese are desperate to get their hands on this mineral wealth. They’re investing a whopping $9 billion in the Congo economy.

Below, Garry White explains why. But first, a word from Manraaj Singh, our emerging markets wizard:

“Pow!”

Thanks, Manraaj.

Of course, Manraaj has a LOT more than that to say about Congo. Right now he’s putting the finishing touches on a recommendation that will give you exposure to the very richest mines in this resource-rich country.

“If I’m right about this investment,” he says, “it’s going to offer the sort of profits that makes China’s deal with the Congo look small!”

For more details, read today’s free edition of Profit Hunter HERE.

China to build “10 New York Cities” — and this is the commodity they’ll need!

Garry White was full of beans at this morning’s meeting. Our commodities man was at a mining conference yesterday, and he’s come back brimming with verve and new ideas.

“One guy there was saying China’s building the equivalent of 10 New York Cities. Well, they’re gonna need a lot of steel, a lot of concrete, and a lot of electricity once they’re up and running.”

Which means one thing. Coal!

“If you don’t have coal in your portfolio, you’re missing out on potentially the biggest commodities bull run of the 21st century so far,” says Garry.

Discover how you can play this trend with an investment that not only puts coal in your portfolio, but also gives you a claim on cash from mining monsters BHP Billiton and Rio Tinto!

Until tomorrow

Ben Traynor

Source: House Prices Need To Drop 10% For First-Time Buyers To Get On The Ladder

Above is the chart of a “cleantech” stock I recommended in the most recent issue of the Taipan newsletter. The company is a respected leader in a rapidly growing industry, with exciting technology and a $2 billion-plus market cap. (You can read more about it in today’s Taipan Daily, too… I’m just so excited about this opportunity, I don’t want anyone to miss it.)

The pick was added to the Taipan portfolio as a long-term investment buy. Little did we know that the very next earnings report would blow the roof off expectations, sending the stock soaring by more than 70% in just weeks.

I’ll be advising my readers to take partial profits soon… but at the same time, this move is no flash in the pain. We’ll be holding at least half the position for major long-term gains, as this company and others like it show potential for 100%, 200% or even 500% to 1,000% returns over the next few years.

And the really good news is, there’s plenty more where that came from. I have an entire stable of powerful “cleantech” picks waiting in the wings — any one of which could serve up triple-digit, long-term returns.

So what do you say? Ready to stake your claim in the cleantech revolution?

Join us in subscribing to the Taipan newsletter, and I’ll be happy to rush you the next pick… hopefully before it racks up 70% gains this time.

Sally Limantour

Editor, Taipan

The 5 Best Foreign Stocks to Own Right Now: These companies are big, strong, and offer a safe alternative to the risky U.S. markets. More importantly, they could pay you $25,000 to $375,000 every year for the rest of your life. And you can own them without investing a single dime overseas. Follow this link for all the details…

Source: Stake Your Claim in the Cleantech Revolution

This stuff is the vintage of the famous Napa Valley, California… hand-blended from a noble mix of specially grown Bordeaux vines, the very same stuff served in the White House to the world’s most prestigious guests.

Even so, it’s had a tough time of late. For reasons you’re about to see their share price nosedived a couple of years back.

But they’re back on track and I think they present a golden opportunity for quick-thinking profit seekers.

I’m not kidding… their share price could go BALLISTIC in the next 12 months if everything goes to plan.

How much do I think the share price could shoot up? Find out here.

Behold the power of ‘recovery plays’

I was a wild-eyed trader for Mullens & Co when I first discovered the money-making power of ‘recovery play’stocks…

Situations where, for whatever reason – an unexpected drop sales; the sudden loss of a few major contracts; a management blunder; an accounting cock-up – a firm’s profits (and share price) have taken a major hit.

Take Reuters… the financial info provider was a dead company walking in March 2003 when shares fell 80% to 96p. After serious management surgery, Reuters breathes still – and the shares have recovered 557%.

And what about Next? It was curtains for the clothing retailer in the 90’s when shares slumped to 12.5p. Today a Next share costs £12.27… a miraculous 9,716% return from the grave!

It’s fairly clear… companies in trouble – which are misjudged by the market – can be prolific money-makers if they successfully turn things around.

And that’s exactly why I believe the fine winemaker I’d like to reveal to you today is MASSIVELY undervalued.

After 14 years of sound management, good profits and a £28 million AIM valuation… along comes this company’s ‘annus horribilis’…

In 2006 in steps a new chief exec.

Within one year he managed to wreck relations with their biggest distributors… reverse their record of exceptional growth… and run up a loss of $6 million on sales that were DOWN by 14%.

Today their market cap stands at £3.93 million.

But get ready for the rebound of the century!

I believe we’re about to witness an exceptional comeback with this stock. Okay, it’s a tiny, tiny company. The risks are high. And I would only recommend a miniscule percentage of your capital to be put on this. But if it comes off the rewards could be spectacular!

Investors who buy in now could be laughing in a year’s time!

You see, the original backer of the business has taken back the reins… and boy is he fired up!

He’s already mended relationships with their distributors, which accounts for over 60% of this winemaker’s sales… and he’s shored up the company’s finances with the sale of valuable land and assets in a deal that gives them an option to buy it all back at a cut price five years down the line.

Results from 2007 ALREADY show they are back on track!

The management’s improved no end too… new financing arrangements have reduced debt… and after a strong Christmas period and a good start to 2008 there are NO signs of the wider economic climate affecting sales.

I’ll be revealing the identity of this corking winemaker in my next edition of RED HOT PENNY SHARES, which hits doormats first thing tomorrow.

But you can read about it right away!

To find out what you need to do, and EXACLTY how much I believe this share could make, click here NOW.

Tom Bulford
for The Penny Sleuth