For many, the realities of life only become apparent when they directly affect us, whether through caring for a loved one or dealing with our challenges.

Demographic studies tell us that the population is aging, and the number of people entering a stage of their lives where healthcare plays an important role is growing every year.

The current population of Canada sits just shy of 40 million people, according to Worldometer.[i] The median age is 41; we have a lifetime expectancy of 83 years and a fertility rate of 1.48. In other words, half of us are in the second half of our lives, and females produce less than two children during their lifetimes. To put this fertility rate into perspective, a rate of 2.1 is needed to keep a population stable, whereby a female produces two children to replace her and her partner during her lifetime.[ii]

So, the population in Canada isn't organically growing quickly enough, and our median age is roughly ten years more advanced than the global average.[iii] In fact, it is projected that by 2025, immigration will account for 81% of the population growth in Canada.[iv]

What does all of this mean when investing?

It means that our population will enter a phase where healthcare system usage will increase. By the way, Canada isn't alone in these statistics. It's rampant in the developed world. If more and more people are using the healthcare system, one could easily conclude that investing in securities that benefit from this trend has a statistically significant reasoning behind it.

Does this mean we suggest deviating from our investment philosophy to pursue speculative biotech stocks? Absolutely not!

At Allan Bush Investment Team, we believe that healthcare is broadening constantly, and we need to explore investing in it while still staying true to our principle of getting paid while we wait. The numbers don't lie; ignoring them would be short-sighted and we pride ourselves on being open-minded about investment themes that align with our philosophy. Taking advantage of long-term trends provides the substance we look for in balancing the sustainable supply and demand dynamic needed for more predictable, steady growth over time.

[i] Canada Population (2024) - Worldometer (worldometers.info)

[ii] Fertility rate | Global Trends, Causes & Effects | Britannica

[iii] Median Age by Country 2024 (worldpopulationreview.com)

[iv] Canada Population (2024) - Worldometer (worldometers.info)