Recent data from the United Nations suggests the world will have 1.6 billion people over the age of 65 in 2050.
In comparison, the number stands at 800 million only at writing.
Investing in two sectors: housing and cruises in particular could position investors to benefit as the world’s population ages, according to the firm’s analyst Evan Tylenda.
Let’s take a closer look at how these two sectors benefit from a greater percentage of the older population worldwide and what stocks within these sectors are worth owning for 2025.
Goldman Sachs expects housing demand to increase
Goldman Sachs expects housing demand to increase as people grow older and look for senior living and housing options suitable for the aged population.
In particular, the investment firm recommends investing in Brightspring Health Services Inc (NASDAQ: BTSG) to benefit from the aforementioned trend.
Brightspring offers a range of services, including home health, specialty pharmacy, rehabilitation care, and infusion services. Its shares were listed on the Nasdaq for the public to trade in 2024.
Brightspring stock has more than doubled over the past 10 months but Goldman Sachs analysts continue to see further upside in it as the population ages.
In November, the $3.2 billion company based out of Louisville, Kentucky reported a strong third quarter and issued upbeat guidance for the full year. At the time, its chief executive Jon Rousseau told investors:
Brightspring remains well-positioned to execute on providing a high level of quality care to patients and continuing to grow our businesses for the remainder of 2024 and in 2025.
Brightspring stock does not, however, pay a dividend at writing.
Cruise industry to benefit
Goldman Sachs expects the cruise industry to meaningfully benefit as the world’s popularity continues to age.
That’s because older people tend to spend their money on different means of entertainment and experiences than the younger generations.
Older adults have more disposable income and time to travel which makes cruises a particularly attractive option for leisure and adventure, according to Evan Tylenda.
Shares of Carnival Corp (NYSE: CCL) have already rallied close to 80% since early August but the investment firm continues to see further upside in them this year.
In December, Carnival said its earnings and revenue grew at a faster-than-expected pace on a year-over-year basis in its fourth financial quarter. According to the company’s chief executive Josh Weinstein:
We’re delivering long-term value for our shareholders through improved operational execution across our brands, essentially on a same ship basis.
That’s part of the reason why Avanza Fonder invested close to $2.0 million in Carnival stock in the final quarter of 2024.
Much like Brightspring, however, CCL doesn’t pay a dividend in writing either.
So, it’s not an attractive option for investors looking to set up an additional source of passive income.
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