Millennials Are the Key to the Highest Gains
(This post was written: Sep 7th, 2017 and updated: July 30th, 2019)
“What’s your strategy?” asked my friend Jenna.
Jenna’s a friend whom I go indoor climbing with. She’s new to the stock market.
And she wants to learn more.
She’s reading up on stocks through Reddit. Reddit is a user-driven discussion app that young investors use; currently ranked the 18th most popular website in the world. (Check out Reddit Stocks if you’re new)
She’s also following stocks on Google Finance.
Now she’s begun “play” trading on Robinhood. Robinhood is a smartphone app. It’s popular among young investors because it offers free commissions.
Jenna is a millennial. And if you read my articles, you know about millennials.
They are the biggest generation ever. Goldman Sachs estimates they number 92 million strong.
Millennials are a focus of my Profits Unlimited service. This generation is also why I base my strategy on one thing. Just one thing.
The Only Path Forward
That one thing is growth.
Growth first, second and third. Growth, for the present and the future.
You see, the millennial generation represents the only path of growth for a business now.
If you want a new customer today, you have to appeal to the millennial generation.
You have to understand the preferences of the millennial generation.
Then you have to create products and services that they want to buy.
For many existing companies, this is a problem.
It’s a problem because their products and services were created for baby boomers.
Now, they face a choice. Innovate and change to meet the needs of the millennial generation, or stagnate and face a long decline.
You can see this choice across the U.S. economy. Food companies are being forced to shift to millennials’ choices. The millennial generation wants local, organic, fresh, nutritious and ethically sourced food.
In finance, they want low-cost choices and socially responsible investments. They also want mobile payment options.
Generaly, millennials are for new technologies and millennials are changing the stock market because they are voting with their dollars. They want products and services that reflect their values and principles.
Massive Growth Ahead
I’m always looking at the preferences of the millennial generation. That’s because companies that grow have stock prices that grow.
In my experience, these growing businesses provide the investing expert to see that!., and you don’t have to be an
Gains like what you would have gotten by owning stocks such as Facebook Inc. (Nasdaq: FB). From its low in September 2012 to its high in July 2017, Facebook’s stock is up nearly 900%.
That’s because millennials are big Facebook users. A 2019 Pew Research study showed that 84% of millennials use Facebook (from 88% when this post was written in 2017). Millennials are on Facebook several times a day, according to that same study.
For Facebook, this has meant growth. Massive growth. Facebook’s sales have soared by 378% between 2014 and 2018 (443% between 2012 and 2016). This growth has made Facebook a half trillion dollar company today.
Focusing on growth means focusing on the millennial generation. The reason to focus on growth is performance.
Growth stocks like Facebook are outperforming the market. The Russell 1000 Growth ETF (NYSE: IWF) is up 5.84% versus just 2.86% for the S&P 500. That’s outperformance of over 28% for this exchange-traded fund (ETF).
I believe this outperformance is going to continue. And that’s because these are the companies that are focusing on the growth that’s coming from the millennial generation.
If you want to get in on this kind of growth, you can buy millennial-focused ETFs. The Global X Millennials Thematic ETF (Nasdaq: MILN) is an ETF that has this focus.
Editor, Profits Unlimited
I’ve been investing for more than 25 years. I started my career on Wall Street in 1991 as an assistant portfolio manager at Bankers Trust. I quickly advanced to prominent positions at Deutsche Bank and ING, managing multimillion-dollar accounts. In 2006, the owners of a $6 billion firm named Kinetics Asset Management recruited me to manage their hedge fund.