Here’s an investing theory that at first glance may make sense:
The number of Americans age 75 or older will increase by 20% in the next 10 years, compared with 14% in the previous decade. Therefore, buying stock in nursing homes should net a healthy profit.
Unfortunately, that theory could not be more wrong. Despite what you may think, nursing home – or senior living community – stocks are a play on real estate, and not demographics. And since we’re in the middle of a housing crisis, investors shouldn’t go anywhere near this group, Cramer said.