Federico Tessore – Investor Passport (Argentina) –
Pets don’t just offer us endless love and companionship, but they also offer one of the best stock market investments you can make.
In recent years stocks associated with pets have proven to be one of the strongest investments you can make. Stocks from pet related companies were among the first to reach new highs after the 2008 recession. Even though the recession had a big effect on consumer buying power, it did not affect the growing trend in pet related spending. In fact, during the recession consumer spending went down by 3%, but spending on pets continued grow at a 5% annual rate. Evidence suggests that companies linked to the pet industry can weather recessions; they are recession-proof.
Experts predict that this trend will continue in the coming decades on the one hand because of changing demographics, and on the other, because of the growing number of companies going into the business of healthcare for pets. Consumers today are far more inclined to spend money on their pets’ health, which in turn has created opportunity for companies that develop medicines for veterinary care. The cost of developing these types of medicines has dropped in recent years because of advances in technology while the market for these kinds of drugs and treatments continues to grow.