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 on stocks, real estate and private equity.
- Selected pharmaceutical stocks.
- Selected biotechnology & medical technology stocks, private equity funds.
- Health care-focused real estate funds and REITs.
- Health and wellness:
- Health care technology
- Health & sustainable food
- Selected nutraceuticals
- Consumer and service companies that have substantial exposure to seniors.
- Financial services: asset and wealth management, health insurance.
Key risks
- Limits on public health care budgets may limit access to innovative treatments for age-related diseases.
