Want to make a buck out of the ageing population? Jump into Netflix and Harley-Davidson shares

It is no surprise that the ageing population is becoming big business. But one of the world’s biggest investment banks is urging investors tapping into what it calls the “demographic dilemma” to look beyond the staple opportunities in aged care and retirement homes and take a deeper dive into the likes of Netflix, Harley -Davidson and even petcare companies. Why? Well, today’s old generations spend wealth and time differently than younger counterparts. Yes, older people, including those approaching retirement, make up a higher proportion of cruise tourists. But Morgan Stanley says they also watch more free-to-air TV and streaming services, such as Netflix, are more likely to buy a Harley-Davidson motorbike and spend more on their pets. The bank’s report explores spending shifts expected to result from the “demographic dilemma” and is the second on the theme, where its analysts have examined the implications of an increasing older population. While the world’s population is expected to rise about 20 per cent by 2050, the 65-year-old and over demographic is forecast to disproportionately double to 1.6 billion. It means that old-age dependency ratios are increasing, with shrinking working-age populations impacted by falling fertility rates supporting a growing ageing population, putting further strain on governments and households. That is expected to fuel rising social costs to support retirees in homes and aged care facilities, but also make it harder for business to source talent and increase the threat of automation displacing workers. Conversely, Morgan Stanley said the scenario would also create investment opportunities in services and technology to support longer lifespans and wellness, enable greater workforce participation by women and willing older people and increase demand for migrants and re-skilling. The bank’s analysts have recommended more than 50 mainly US and European stocks across three areas - healthcare, retirement living and entertainment and leisure - seen benefiting from the ageing population. Just two were Australian, respiratory disorders company ResMed and Nine Entertainment. The recommended stocks included cruise companies such as Viking, Carnival, Norwegian and Royal Caribbean. entertainment, along with US broadcaster Fox and UK television network ITV.

Want to make a buck out of the ageing population? Jump into Netflix and Harley-Davidson shares

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