U.S. household net worth has exploded to US150-trillion from US$17-trillion in 1980. BofA Securities equity and quant strategists Ohsung Kwon and Savita Subramanian note that the Baby Boomer generation was the prime beneficiary of the trend and this implies specific opportunities, and pitfalls, for investors.
Mr. Kwon and Ms. Subramanian uncovered five stock opportunities arising from these demographic trends. The four long ideas are luxury homebuilder Toll Brothers Inc. ( Demographic trends move slowly so there’s no need for investors to rush out and implement these stock ideas immediately. Over time, however, if the picks begin to perform, or market volatility provides an opportunity to buy them at steep discounts to historical valuation levels, investors might want to add them to their portfolios.This is the Globe Investor newsletter, published three times each week.
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