The next big market boom? Mizuho analysts say baby boomers’ spending, not AI, will be a silver tsunami, to unlock a $1 trillion opportunity

As the stock market's gaze is focused on artificial intelligence (AI) for the next market revolution, Mizuho Financial Group's US analysts have pointed out a different type of "AI" that has the potential to unleash a huge $1 trillion opportunity, as per a report.

Rise in "Aging Intelligence"

This AI is called "aging intelligence", as per Business Insider. Based on Mizuho's latest report, the consumption power of America's aging population, especially those aged 75 and above, is going to expand at a faster pace, and will be a key theme for an investment opportunity, according to Business Insider.

The Japanese bank's analysts wrote that, "Key opportunity — seniors will become a larger piece of the consumer spending pie, representing a ~1T opportunity," as quoted by Business Insider. Analysts also mentioned that, "Essentially, spending by the 75+ cohort will grow at 2x the US average," quoted Business Insider.


Mizuho analysts forecast that the number of Americans above 75 years, is expected to grow 4% each year, reported Business Insider. As per the bank, baby boomers are on track to make up 10% of the total US population by 2030, according to the report.

As per Business Insider, spending by the senior population is expected to grow 87% from 2023 through 2030, increasing over $1.3 trillion during this timeline. The analysts claimed that spending by baby boomers is projected to increase by about $2.2 trillion, reported Business Insider.

The trend, termed as "Silver Tsunami," is used to describe America's ageing population, according to the report. Mizuho highlighted in its report that, "Corporate America still needs to focus on this shift, and AI (Aging Intelligence) will be a differentiator," quoted Business Insider.

Industries Set to Benefit from the Aging Population

Mizuho has listed a number of industries which stand to gain from the consumer boom among older adults, as per Business Insider. Top on the list is medicine, where prescription expenditures will experience the biggest growth within the next five years, with insurance, medical devices, and hospital services also expected to be "winning" categories in terms of consumer spending, according to the analysts.

Top Stock Picks

Here is the list of 10 firms that the experts have named that they claim would average an upside of 35% over the next 12 months due to this trend, as per Mizuho. Some of these best bets include:

• Biogen Inc
• DoorDash Inc
• Encompass Health Corp.
• EyePoint Pharmaceuticals Inc.
• The Home Depot Inc.
• Robinhood Markets Inc.
• Glaukos Corporation
• Rockwell Automation Inc.
• The Simply Good Foods Company
• Welltower Inc.

FAQs

What is “Aging Intelligence”?
Aging Intelligence (AI) refers to the rising economic power of the aging population, particularly those aged 75 and above, and its potential impact on consumer spending, as per Mizuho.

Which sectors will gain from this trend?
Healthcare-related industries, like prescription medicines, insurance, medical devices, and hospital services, as per Mizuho.