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Bear Market
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Market Decode™
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[Marci McGregor speaking throughout]
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Please see important information at the end of this program. Recorded on 9/17/2026.
On screen copy:
Marci McGregor
Head of Portfolio Strategy
Chief Investment Office,
Merril and Bank of America Private Bank
Here's a number that stopped me: By 2030, nearly 1.4 billion people worldwide will be over 60. By 2050, that could reach 2.1 billion.
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Over-60 population expected to grow to 2.1 billion by 2050.
Source: World Health Organization report, October 1, 2025.
As the world gets older, demand for healthcare is likely to grow. And there are several factors at play that indicate why it might be a good time for investors to take a fresh look at the sector.
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Net returns:
- MSCI Healthcare U.S. index: 13.6%
- MSCI U.S. Index: 1.7%
Source: MSCI, June-August 2026
Past performance is no guarantee of future results.
First let's talk performance. The sector has returned nearly 14% compared with less than 2% for the broader U.S. market for the three months ending in August.
So what are the factors giving healthcare it's current tailwinds? First, we're seeing signs that we may already be in the early stages of a long-term demand cycle. Healthcare procedures jumped after the pandemic then eased a few years ago. Even so, people are still using more healthcare services than they did before the pandemic, especially outpatient care.
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Public biotech revenue hit $232 billion in 2025, up 12.5% YoY.
Source: EY Biotech Beyond Borders 2026
Some parts of healthcare look better positioned than others. Biopharma and biotech sit at the center of new treatment and innovation. And as the global population ages, it could create lasting demand for treatments tied to cancer, heart disease, metabolic conditions and neurodegenerative disease.
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60% of U.S. healthcare professionals use AI in their practice.
Source: NIH Artificial Intelligence in Healthcare, December 30, 2025.
AI could also give the sector a lift. Right now, it's helping with paperwork, billing and scheduling. Next, it could improve diagnostics. Longer term, it may help researchers find drug targets, design molecules and run better clinical trials. That potential payoff will take time, but the work has already started.
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Healthcare sector risks:
- Potential midterm-related volatility
- Funding concerns
There are risks. Policy can reshape drug pricing and reimbursement. Research funding matters, especially for drug discovery and early-stage studies.
So, back to those 2.1 billion people over 60. An aging population alone won't lift every healthcare company. But paired with steadier demand and faster innovation, it creates a powerful long-term backdrop. And it makes the sector worth watching now.
And that's the Market Decode.
On screen disclosures:
IMPORTANT DISCLOSURES
The opinions expressed are as of 9/17/2026 and are subject to change.
Past performance is not a guarantee of future results.
Asset allocation, diversification and rebalancing do not ensure a profit or protect against loss in declining markets.
Investments have varying degrees of risk. Some of the risks involved with equity securities include the possibility that the value of the stocks may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the U.S. or abroad. Investments in a certain industry or sector may pose additional risk due to lack of diversification and sector concentration.
This information should not be construed as investment advice and is subject to change. It is provided for informational purposes only and is not intended to be either a specific offer by Bank of America, Merrill or any affiliate to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available.
The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., ("Bank of America") and Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S" or "Merrill"), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp.").
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[End of transcript]
Healthcare is entering a period of powerful long-term change. By 2030, nearly 1.4 billion people worldwide are expected to be over age 60 — and that figure could reach 2.1 billion by 2050.Footnote 1 As populations age, demand for care and treatments tied to age-related conditions could continue to grow. The sector has also shown renewed momentum, returning nearly 14% versus less than 2% for the broader U.S. market during the three months ending in August 2026.Footnote 2
In the video above, Marci McGregor, head of Portfolio Strategy in the Chief Investment Office for Merrill and Bank of America Private Bank, explains why healthcare may be worth another look. She explores the sector's recent performance, the durable demand created by an aging population, and the potential for biopharma, biotech and AI to reshape care and generate potential returns. She also highlights risks for investors to be aware of. "An aging population alone won't lift every healthcare company," says McGregor. "But paired with steadier demand and faster innovation, it creates a powerful long-term backdrop."