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Strategies & Market Trends : Companies that will profit from the Baby Boom

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To: DVAN who wrote (37)9/3/1997 2:41:00 PM
From: David Bogdanoff   of 43
 
DVAN:
I will share my thoughts on your question. Yes, spending and saving are two different and usually mutually exclusive behaviours. In the case of vacation homes, however, I think that can be both behaviours as a vacation home is surely for present enjoyment (i.e. spending or consuming). However, I believe that in many cases people will purchase vacation homes in upscale areas with the expectation of price appreciation; in this case we have saving or investment.

I think that we will see both types of behaviour as the boomers represent a rather wide age range with different behaviours depending on where they are in their personal cycles. There is investment opportunity nomatter how they spend their money.

For example, many financial firms have been touted because they are well positioned to help boomers save/invest through annuities, etc. (sorry, their names escape me as I write; I think Conseco was one).

At the same time, older boomers are now moving into the age at which people like to buy motor homes (not an investment as they depreciate).
Thus, the motor home industry deserves attention for a long term investment as the stream of boomers entering this age group spans many years. BTW, I recently looked at this group in Value Line and didn't find anything exciting going on with it right now. However, its better to buy before the big moves are made.

Hope that helps. Anyone else have any thoughts or info?

David
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