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Bank of America Data Reveals that Boomers and Traditionalists are Currently the Only Age Groups Increasing Their Consumption


the staff of the Ridgewood blog

Ridgewood NJ, Bank of America data reveals that Boomers and Traditionalists are currently the only age groups increasing their consumption, making the sectors they invest in attractive to investors. In contrast, Millennials are tightening their spending due to economic challenges, and this divergence in consumption patterns has implications for different segments of the consumer sector.

Boomers, the wealthier older generation, are experiencing a “Boomer boom” as they spend significantly on various goods and services. One reason for their robust consumption is that they are less affected by rising interest rates compared to other generations. Boomers have generally saved more, and they benefit from higher yields on their savings accounts. Additionally, many of them already own homes and are not exposed to the high mortgage rates that impact others.

With a surplus of cash, Boomers have become the top spenders in the U.S. economy.

Conversely, Millennials are spending less due to the challenges posed by higher interest rates and inflation. When they do spend, it’s often on housing and apparel, but they generally have tighter budgets. Rising borrowing costs and the historically unaffordable housing market have limited their wealth accumulation.

Given these disparities in consumption trends, Bank of America suggests that investors should consider going “long Boomer stocks” while taking a “short Millennial stocks” approach.

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