The share of the population over 60 will double to 2.1 billion by 2050. Added to this, obesity has tripled in the world since the mid-1970s. COVID, aging, and rising incomes have raised awareness of wellness and a renewed focus on increasing people’s lifespans and more importantly, the number of healthy living years.
Poor health conditions weigh heavily on potential GDP growth because they impact economic activity in several ways. Goldman Sachs estimates that GDP could be more than 10% higher if poor health outcomes do not limit labour supply in the US.
The emergence of weight-loss medications, AI-powered drug discovery, genomic and regenerative medicine techniques, such as gene and cell therapy, and advances in diagnostics for detection of diseases such as Alzheimer’s all imply a remarkable pace of healthcare innovation. This implies a sustained pace of innovation and investment which could have a positive impact on the entire economy.
Our recommendations
A theme focused mainly on equities
- Selected Pharmaceutical stocks
- Selected Biotechnology & Medical Technology stocks and diversified funds
- Health and Wellness:
- Healthcare Technology
- Health & Sustainable Food
- Selected Nutraceuticals
- Consumer and Service Companies that are well exposed to Silver surfers.
Key risks
- Cuts to healthcare budgets from governments.
- Greater-than-expected numbers of drugs that fail to receive regulatory approval.
- Changes in healthcare regulation by major governments especially after the upcoming US elections (5 November 2024).
- Major recession that impacts spending on the health and wellness sector.
