Aging Baby Boomers Present Trillion-Dollar Opportunity, Mizuho Reports
A new report from Mizuho Securities highlights a significant investment opportunity arising from the aging baby boomer population in the United States. The financial services firm projects that Americans over 75 will comprise 10% of the population by 2030, potentially driving consumer spending up by over $1 trillion in the next five years.
Mizuho dubs this demographic shift “aging intelligence” (AI), emphasizing its potential to reshape consumer spending patterns. As older Americans become a larger part of the consumer base, their spending is expected to grow at twice the US average rate.
Demographic projections indicate that the number of Americans over 75 will increase by 4% annually. This growth is set to outpace other age groups, with spending by those 75 and older projected to surge by 87% from 2023 to 2030. By 2035, this could translate to an increase of up to $2.2 trillion in consumer spending.
The economic implications of this “Silver Tsunami” are substantial, with Mizuho suggesting it remains an under-appreciated trend that could significantly impact corporate America. Companies that successfully leverage aging intelligence are poised to gain a competitive edge in the market.
Key spending categories expected to benefit from this demographic shift include medicines, which are projected to see the largest growth with a 2.5% year-over-year increase. Other significant areas include insurance, hospitals, and medical devices.
In light of these projections, Mizuho has identified 10 companies well-positioned to capitalize on the aging population trend. These stocks could potentially see an average upside of 35% over the next year.
The top stock picks highlighted in the report include Biogen Inc. (BIIB), DoorDash, Inc. (DASH), Encompass Health Corp (EHC), EyePoint Pharmaceuticals, Inc. (EYPT), The Home Depot, Inc. (HD), Robinhood Markets, Inc. (HOOD), Glaukos Corporation (GKOS), Rockwell Automation, Inc. (ROK), The Simply Good Foods Company (SMPL), Welltower, Inc. (WELL), and Ventas, Inc. (VTR).
As the demographic landscape continues to evolve, investors and businesses alike are advised to closely monitor the aging population trend and its potential impact on various sectors of the economy.
