Jeffrey Viksjo, CFA
jeffrey.viksjo@ogorek.com

The Wall Street Journal article found at the link below asks the question, who can spur better investment returns: baby boomers, now entering retirement, or millennials, with the eldest turning 40 in a few years and entering their peak earning years?

To answer the question, the author has created two baskets of stocks designed to track the spending habits of each generation. Some of the names are obvious, Netflix for millennials, and CBS (increasingly broadcasting to people over 60) for baby boomers. Millennials have more technology names, while the boomer portfolio tilts towards health care. However, a few names are more nuanced: as millennials have delayed home ownership, real estate developers, like Lennar, should benefit as that generation “catches up”. Facebook is in the baby boomer portfolio as it’s the only social network to so far capture their attention (almost half of people over 65 use it).

The author closes with a warning to those attracted to the higher-growth and more expensive millennial stocks: “Boomer brands and their habits in general have stood the test of time while those of the more fickle and impressionable younger generation haven’t. Some will become the ubiquitous household names of tomorrow. Others will be expensive wipeouts.”

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