Millennials’ Baby Boom = Profits
Don’t look now, but millennials — a bigger generation than baby boomers — are starting to have a baby boom of their own.
According to a recent report from federal authorities, the latest data shows the national birth rate hitting its highest levels since 1964! New 30-something parents accounted for the majority of births in Connecticut, Massachusetts and New Jersey. In Missouri, births to women in their 30s rose more than 17%.
OK, so maybe there’s not enough data yet to pronounce it a boom … more like a mini-boom. But this age group is the leading edge of the millennial generation. Researchers suggest it could be just the start of a bigger trend as more and more millennials decide to settle down and raise families.
As Profits Unlimited Editor Paul Mampilly has noted recently, that spells a big-time opportunity for investors. A few months ago, he highlighted one of those opportunities and suggested purchasing the iShares U.S. Home Construction ETF (NYSE Arca: ITB).
That exchange-traded fund is up roughly 15% since then and is on the verge of pushing further to new all-time highs.
Yes, there are risks regarding the health of the economy. Interest rates could rise. Lots of things could happen.
But babies happen too. The next thing you know, new moms and dads are abandoning the brownstone in the city for that great American tradition of a big mortgage and a starter home in the suburbs.
You probably know what comes next: lots of spending on everything from baby food and diapers to new furniture and clothing … and lots of fix-up work too.
As Paul can tell you on the pages of Profits Unlimited each month, there’s money to be made by investors every step of the way as old ideas get re-embraced (or reimagined) by a new generation of parents. Bloomberg recently noted the latest craze among millennials: couponing!
Perhaps the coupon trend is no surprise given the amount of student loan debt many still have to pay off. But it’s just one example of the bigger changes (and huge opportunities) still to come for investors as yesterday’s hipsters become tomorrow’s hopeful parents.
Jeff L. Yastine