Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

5 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - & author of Things That Make You Go Hmmm...one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, MacroBusiness.

Tuesday, 21 July 2015

Healthy stock returns

Health care sector expansion

When I was busily penning my first book Get a Financial Grip back in 2011, one of the key themes I identified was the health care sector as a likely strong outperformer over the decades ahead. 

The underlying reasoning was simple enough: Australia has both a strongly expanding population and an ageing one.

In this context, the most recent Quarterly Detailed Labour Force figures revealed that health care has become the fastest growing employment sector in the country.


Moreover, this is part of a long term structural change.

Over the past year some 33,000 jobs have been shed from the mining sector, and it is sure to be a tough time ahead for many resources regions.

Manufacturing employment has also continued to shrink, albeit at not quite such a dramatic pace, while agriculture and fishing shed some 28,000 positions over the year to May 2015.

Despite the drag from these sectors the Australian economy has added more than 255,000 jobs over the past year according to the ABS "original" data series, very much driven by strong growth in services employment.

Healthcare and social assistance added a whopping 98,000 new jobs in the year to May 2015, and this is a sector which is expected to thrive over the decades ahead as the Australian population both expands and ages.


Returns and picking winners?

In terms of how investors might have aimed to profit from this and which stocks to pick, the safest approach has simply been to aim to own all of them worth owning.

The S&P/ASX 200 Health Care provides investors with a sector benchmark that reflects those companies included in the S&P/ASX 200 that are classified as members of the GICS health care sector and sub-industries.

The results haven't been too shabby either, with 5 year annualised returns tracking at 18.72 per cent.