12 stock picks to buy, capitalize on millennial wealth boom, says Cowen - Business Insider

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Cowen breaks down 8 key investing themes and 12 stocks to buy as the net worth of millennials quadruples over the next decade

Millennials share of the United States' net worth is expected to quadruple by 2030, Cowen's equity analyst, John Kernan, said in an October 14 research report.

Cowen recently conducted its third annual survey into the behaviors of millennials - those born roughly between 1980 and 2000 - and Generation Z - those born between 1996 and 2010 - for insight into these groups' behaviours. The survey interviewed 1,200 US adults from the ages of 18 to 34, benchmarked against 1,500 US adults from the ages of 35 to 55.

Cowen's survey identified eight key themes that will have an effect on growth and risk across these sectors and the bank's team of equity analysts identified 12 stocks that will be well placed to benefit from that broader shift in consumer behaviors. "The network effects of each marketplace are significant with data, and more users/community participating in the market creating more trading, more hype/storytelling around product launches and enabling brands to create customized, limited-edition product at premium prices and high sell-throughs," Kernan said. "This ultimately can circle back and help to drive primary market sell through for brands depending upon brand heat in the secondary market.

"Retailers and brands in the mid-tier mall and department store based fashion may continue to lose share, while value driven retail and innovation/aspiration retailers and brands should continue to win," Kernan said "This has manifested itself in a barbell strategy towards sector positioning - own Athletic, Off-Price, luxury and broadlines.

 

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