Market Decode™: Can healthcare’s healthy returns continue?

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 2050¹. 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 2026².

 

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.”

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¹World Health Organization report, October 1, 2025.

²For the months of June-August 2026, the MSCI Healthcare U.S. index had a net return of 13.6% while the MSCI U.S. index had a net return of 1.7%. Source: MSCI

 

Important information

 

The opinions expressed are as of 9/17/2026 and are subject to change.

 

Investing involves risk, including the possible loss of principal.

 

Past performance is no 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.

 

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.”).