A Millennial Portfolio

05/06/2016 9:00 am EST

Focus: STOCKS

Stephen Biggar

Director, Product Strategy, Argus Research Corporation

There are now over 92 million millennials, born between 1982 and 2000 and ranging in age from their mid-teens to their mid-30s; this group has $300 billion in direct purchasing power, explains Stephen Biggar, senior editor of Argus Rsearch.

They have an additional $500 billion in indirect purchasing power, representing spending by their mainly boomer parents on housing, sustenance, clothing, education, healthcare and entertainment.

Millennials are coveted by marketers, even though they control only 30% of their purchasing power. As millennials rise into their maturity, they will increasingly control their own spending.

And disposable income will further rise as mid-20s millennials pay off their “mountain” of student debt.

Millennials have grown up in the digital age, which has granted them insight into the real world never experienced by prior generations.

Immersed in the real-time news cycle, millennials insist that their devices and clothes come from workplaces that use resources sparingly, practice sustainability, and treat workers fairly.

And, much as they want to make the earth a healthier place, they are insisting on healthier fare for themselves and their children.

In short, millennials are completely at home in the consumer economy; but they’re reshaping it to produce the goods, products, and services they want.

Millennials have been surrounded by fantastic affluence, but have also seen their middle-class parents fighting to hold onto their life-styles.

Millennials more than any prior generation seek to build careers rather than earn salaries; value co-worker networks over any single job; and start their own companies with unmatched entrepreneurial zeal.

The intersection of these trends — sustainability; healthier living; and entrepreneurial spirit — has resulted in the emergence and growth of numerous companies well suited to the new generation.  

We have added the following stocks to our Millennial Portfolio:

Lululemon Athletica (LULU)
American Electric Power (AEP)
Blackhawk Network Holdings (HAWK)
Nvidia (NVDA)
Illumina (ILMN)
Raytheon (RTN)
Macys (M)
Netflix (NFLX)

Many of these companies are expected to be future industry leaders. A diversified portfolio, of course, is more than just a list of companies.

To build the Argus Millennial Generation Portfolio, we have applied concepts such as industry diversification, balance sheet strength and growth at a reasonable price.

Subscribe to Argus Research here…

By Stephen Biggar, senior editor of Argus Rsearch

 

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