From MarketWatch:
5 industries that Millennials are destroying
There’s a lot to be said for watching demographic shifts as you craft your long-term investing strategy.
And while Baby Boomer stocks like health care and insurance get a lot of attention, long-term investors should also consider the impact Millennials will have on businesses — and their portfolios.
There are about 80 million Americans who were born between 1980 and 1995. And while much has been made about the challenges for Millennials to get good jobs or contribute to the economy, that is sure to change. As the Boomer population starts its inevitable decline, the power of this age group will grow substantially in the years ahead.
Some of that will be good, as the tech talents of younger Americans are put to work in the economy and as they grow into a powerful consumer class.
But for some stocks, the rise of Millennials is assuredly bad news.
Which picks? Well, here are five specific businesses that Millennials are shunning, which could cause a lot of pain for investors over the long-term if current trends continue.
Cars
Cruising around in my rusty Chevrolet Cavalier with the sunroof open and the radio up was the very definition of freedom to me at 18 years old.
But these days, there’s simply not the interest in cars like there used to be.
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Cable TVIt’s unclear where streaming video is headed in the next several years. But it’s clear that the future is likely with Netflix or Google property YouTube and not an old-guard cable company.
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Brick-and-mortar retailIn the short term, I think retail is in big trouble. But folks blaming bad first-quarter weather are missing the broader long-term pressure of e-commerce that is reshaping the entire sector as more shoppers go online instead of to the mall.
Broadly, online sales continue to outpace brick-and mortar results. Online retail sales grew about 17% in 2013 , with total overall retail sales up only a fraction of that. So it’s no surprise that some of the biggest laggards in retail are stores that simply can’t get their online acts together.
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HomebuildersBy now, you’ve certainly seen all the stories about why Millennials are a drag on the housing recovery.
The reasons are numerous, but the biggest one-two punch tends to focus on the personal desire to live urbanely and the financial practicalities of less income and a lot of student-loan debt.
Consider that about half of home-buying Millennials lately are asking mom and dad to shoulder their down payments, according to a recent Trulia survey. Others are so spooked by the Great Recession and mountains of student-loan debt that they have no desire to take on a mortgage at all considering other financial concerns.
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Soft drinksSugary, carbonated beverages like Coca-Cola KO -0.24% and Pepsi PEP -1.11% seem like the staple junk food of any young American. But not anymore, thanks to a focus on fighting childhood obesity and a rise of healthier alternatives.
As a result, Millennials drink much less soda (or pop or whatever you want to call it). And that number is declining every year.
First
Another day in hell.
This article makes sense and hard to miss unless one is living under a rock. But then again, every generation adapts to the times. They set the trends and react to trends. My company is highly concentrated with millennials while hiring a few of us more experienced cats to the mix. I blend in with anyone thus my reason for being there but I agree, these trends mentioned are so obvious. I will also say, however, those so-called stereotypes about this generation are true. They are definitely coddled. They work hard, not saying they don’t but they also like the cushy, tender approach.
Open house… a knockdown, a complete redo just for the privilege of spending $650,000 dollars. Why, of course, it’s the dirt that’s worth it because we know that unicorns have p1ssed and sh1t at this very location:
http://www.njmls.com/listings/index.cfm?action=dsp.info&mlsnum=1421087&openhouse=true&dayssince=15&countysearch=false
I love the prescription bottles on the kitchen table. As if you needed that tidbit to surmise the age of the current occupants:
http://www.njmls.com/listings/index.cfm?action=dsp.info&mlsnum=1415153&openhouse=true&dayssince=15&countysearch=false
Not for nothing, you can walk to the high school, walk to the train and it claims to have central air. One could do a lot worse. It’s almost digestible at a 450K list but it would still need to be worked. Still, you’re looking at a 90K down payment which means you need to double that figure to account for expenditures and reserves. See what I mean? We’re desensitized. That’s a lot of scratch just so your kids don’t have to be subjected to gang activity. Not many qualified out there. What a long slog between unqualified buyers and sellers this is gonna be. Top of the 5th, no runs, no hits, many errors.
http://www.njmls.com/listings/index.cfm?action=dsp.info&mlsnum=1421337&openhouse=true&dayssince=15&countysearch=false
grim,
unmod me.
5,
Eddie that’s the nicest thing you’ve ever said about a house, you had better bid!
re # 7 – Perhaps because of the gun rack in the Living Room?
Gary, better find out why gazillions of people in Allendale cashed out durning the boom and moved to Hunterdon. I know a few folks here who lived in Allendale, and none of them have anything good to say about it.
It’s Sunday…lighten up Francis….
Transfuse the Cadaver says:
June 22, 2014 at 9:02 am
Another day in hell.
Don’t you have any nostalgia for all the sh!ts taken in that commode?
Fast Eddie says:
June 22, 2014 at 10:08 am
Open house… a knockdown, a complete redo just for the privilege of spending $650,000 dollars. Why, of course, it’s the dirt that’s worth it because we know that unicorns have p1ssed and sh1t at this very location:
Throwing a little cold water in Gary’s face . . .
http://www.bloombergview.com/articles/2014-06-20/boomer-housing-bust-ain-t-happening-yet
Sorry, Gary
Anecdote, neighbor sold house at asking, $525k.
Buying in the Toll Brothers community near clot, townhouse costing nearly the same amount as they sold their SFH for.
Meat Cadaver [10],
If they sold during the peak, you would think these folks would be singing nothing but joy about the town they just left. Who knows. Some are never happy. Allendale is a nice town; quiet, clean, etc. Everyone has their reasons.
Ragnar [8],
I must have had a brief blackout. Now, back to my angst fueled rants! :)
Ok folks, just came back from this one. It’s nice, right? Hold on, kids! The siding was warped in many places; the Central AC outdoor unit looks like it’s about to give way at any moment; the bathrooms had mold buildup, much dirt and cracks; basement is unfinished; kitchen was dated and dirty; there were sizeable cracks in the foundation walls; windows showed mold and rot in various places; walls were not painted or clean in years – lots of marks, dirt, gouges, etc.; zero sun in yard as giant trees consumed it so there was much moss growing. There was other things as well but not at this price. Chop a 100 grand off the price and I’ll make a bid today.
http://www.njmls.com/listings/index.cfm?action=dsp.info&mlsnum=1414158&openhouse=true&dayssince=&countysearch=false
Can someone please tell me what the recommended house inspector charges assuming you do it all (thermal imaging, etc)?
(Peter Bennett)
http://www.afullhouseinspection.com/
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I hate the soft cushy tender approach.