The hobo generation of grifters and Bernie bros are never gonna spend money like previous generations. They’ve been mutated by the water, the media and their phones. But, the delusional pollyannas over at BAC are pleasantly optimistic, despite all of the evidence pointing to the opposite direction.
“There are 2 billion Millennials worldwide and they have overtaken Boomers to become the largest living generation in U.S. history,” the team writes. “But we need to prepare for the rise of the 2.4 billion Centennials — born at the turn of the century and set to live to over 100 years. They are embracing diversity, sustainability, globalization, disruptive technology, peak stuff,’ new business models, and entrepreneurialism like no generation before them — and they are economically optimistic to boot.”
Not only is the team betting on them living longer, they are also predicting their incomes will nearly triple in the next 15 years, going from $21 trillion in 2015 to $62 trillion by 2030. Based on this, here are the five key themes they believe are in play:
Here is how BAC wants you to play this terrific tailwind of sloppy Joe eating renters.
Consumerism: American Eagle Outfitters Inc.(AEO), Expedia Inc.(EXPE), Target Corp.(TGT), Starbucks Corp.(SBUX), Fitbit Inc. (FIT) and Under Armour Inc.(UA)
Homes: The Home Depot Inc. (HD), Lowe’s Companies Inc. (LOW), Masco Corp.(MAS), and Toll Brothers Inc. (TOL)
Education: Bright Horizons Family Solutions Inc. (BFAM), Adobe Systems Inc. (ADBE), Alphabet Inc.(GOOGL), HP Inc.(HP), and Microsoft Corp.(MSFT)
Finance: First Data Corp. (FDC) and On Deck Capital Inc. (ONDK)
Seriously, how fucking lame is this report? Notice how the genius doesn’t bother to mention NKE or a real restaurant, other than hipster SBUX. Talk about stereotyping a generation. Although the millennials are in fact hobo vagabond hipsters right now, they will not be once they start earning real money. This BAC analyst is a fucking moron of the first magnitude. If I actually cared enough, I’d find his name and write it on this blog, calling him such.
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Wells Fargo also puts out reports of similar idiocy/irrelevancy
If only DB could figure out why productivity is so low and why the job market is such shit in the face of the most educated generation in history.
They don’t want to own a home. They want a condo, and to walk to the nearest local organic eatery. i don’t think there’s a publicly traded restaurant chain to capitalize on besides Starbucks. Chipotle had an “in” with them but they blew it. This generation wants one off locally owned places.
The play might be the payment processing company….like square, paypal, or apple pay.
Agreed
Man. The Millennials are a whole shit box of things. But not “wanting” to own a home? That is ridiculous. The American Dream knows no generation. They are broke and saddled with debt. Exactly how would they buy a home? Hating on the kids is a con. Divide by age and race and on and on and on. By the way. Condos fucking blow.
Past performance is not indicative of future returns. I think these guys are thinking, where should money have been allocated in the last 10-15 years and extrapolating it forward.
if this exercise was being done around 1999, the answers would have been internet, corporate consolidation, and coffee. People wanted fast, convenient, and cheap. Netflix, Amazon, Starbucks. Then around 2005 Apple and Google entered the equation. Ironically, maybe the current kid generation is what provides inflation to the rest of the economy. They’re willing to pay premiums for “experiences” and “quality”…..see micro brew/craft beer, traveling, organic local restaurants.
Amazon was a negative return from 1999-2009 (at every point in between), Netflix didn’t exist, Starbucks did okay, but lost almost all its gains in the recession as well. You sounded so self assure though.
Your last list is what everyone is now paying for.
If they’re anything like the boomers one thing is certain. They will inflate the hell out of all the assets they can get their hands on. The Treasury is counting on this…
Long hemp farms.
That trade has left the building in some states. Better have some fire power to defend against Big Tobacco. They are coming. The old we will buy you out or dig a hole.
Dumbest report ever. Reads like one of those “10 tips for retirement” pieces by some grandmother in USA Today.
they also love cross fit and orange theory. The traditional $30 a month gym membership is being replaced for monthly class payments in the $200+ range.
Millennials will not make real money, what your seeing is a lost generation where, instead of business owners, success is most commonly achieved through bs sales corporate jobs. These jobs have a lower ceiling and create lower value to the economy pushing the rest into permanently low paying jobs.
I partially agree with you. The concept of being a business owner has changed though. You’re thinking in the traditional sense, but millennials are becoming business owners. They’re photographers, bloggers, “content creators” online, app developers, etc. It’s just not brick and mortar shops with employees.
Content creators have a worst earnings curve than professional athletes. Look around you at what young people are doing. Some are making big money in sales, some are making ends meet in careers whose earnings have been killed by stagflation (teachers, accts, crappy sales people, engineers), and a large portion do what amounts to nothing in part time bullshits and blogs. The debt people have doesn’t jive with deflation at all, growth in the next 20 years will be almost nothing.
Is Gold working today in Euro terms?
Sarbjit Nahal, Beijia Ma CFA, and Felix Tran ^_^
They couldn’t have been any more general. I agree with Fly. This report is a piece of garbage. Yes, the kids will surly enjoy trendy brick and mortar stores for the next 85 years!
American Eagle? Are you fucking kidding me? Plus one on square though.
It’s gonna be interesting to see the wrinkled faded tattoos and saggy pierced nipples in the future.