In 2008, the world changed.

For one thing, the consequences of risk-taking no longer belong to the bearers of risk, but to society as a whole. Capitalism is a great thing when everything’s working as intended, and everyone’s happy to privatize the gains reaped from free enterprise. When the downside comes to bear, though, it seems that the politicians prefer to socialize the losses.

And it’s the government, not the free market, that is the arbiter of which companies should survive, resuscitated with our collective riches, and which should fail. Its seemingly random determination of the rescued and the extinct is partly to blame for the swoon in investor confidence, the flight of fixed-income investors and the resulting market turmoil.

One thing that hasn’t changed, though, is that we keep getting older. It’s an unavoidable fact, one that even intervention from our overbearing government can’t change.

There are 77 million baby boomers, and as they move out of their primary spending phase of their lives and into their saving and retirement years, they will dramatically impact many parts of our economy. The Generation Wave Growth Fund is designed to capitalize on that very fact.

Our portfolio of various ETFs representing a mix of global markets, asset classes, sectors and investment styles offers an investor a single, broadly diversified fund that could be used as a core holding.

We’re especially keen on the health care sector right now, which we believe will be particularly impacted by America’s aging population. Health care has also traditionally been a defensive safe-haven in otherwise turbulent markets.

Statistics suggest that as people progress through their lives, both their incomes and expenditures tend to increase until about age 48, after which both begin to decline. Health care expenditures are the exception, though; spending on health care accelerates as people age.

While the economy contracts and our lawmakers and central bankers struggle to resolve this historic meltdown, uncertainty looms. But we can safely assert that people will always age.

At the Generation Wave Growth Fund, we aim to benefit from that undeniable fact by investing in health care and other parts of the market that stand to be most impacted by this demographic trend.

Opinions expressed are those of the portfolio managers and are subject to change, are not guaranteed and should not be
considered a recommendation to buy or sell any security.