If you were born between 1980 and the mid-2000s, Wall Street probably hates you. It’s not because you’re a narcissist, entitled, or lack entrepreneurial spirit. And it has little to do with the fact that you haven’t opened a trading account to buy stocks. It isn’t even because you’re shunning high finance to pursue a “more meaningful” career.
No, Wall Street dislikes you because you’re difficult to cash in on.
If you haven’t guessed already, I’m talking about millennials—a cohort of Americans who are constantly being told how awful they are.
Wall Street’s gripe with millennials is a big one. They represent one-third of the US population, making them the largest demographic in America. Yes, bigger than the baby boomers.
Unlike prior generations, millennials are in no rush to grow up. Instead of making down payments on first homes, millennials are crashing in their parents’ basements. Rather than shopping at Walmart, they’re buying their groceries at farmers’ markets. This generation doesn’t buy cars. They use ride-sharing programs like Uber.
The unique lifestyles and consumer preferences of millennials are frustrating Corporate America. McDonald’s is rewriting its menu and rethinking its marketing strategy to reach millennials, who would rather down a kale smoothie than stuff their faces with Big Macs.
Say what you will about millennials, there’s no denying that they’re the future of America. The question that remains is: How do investors play a demographic that isn’t getting married, having children, or buying homes?
The answer is technology.
For better or worse, millennials are obsessed with their gadgets. Twenty-somethings can’t even take a bite of their sandwich without first snapping a picture of it. And those photographs of ramen bowls and steam buns aren’t being stored away as personal mementos. Millennials are broadcasting them on the Internet for everyone to see.
But the key to “reaching” millennials isn’t through technology in a general sense. Social media is the ticket.
According to Entrepreneur.com, 71% of millennials log in to social media daily, and the average user spends more than five hours on social media.
This connection with—some would argue, addiction to—social media defines millennials. Unfortunately, that doesn’t make investing in this generation any easier.
There are countless social media services out there. New ones pop up every day. Choosing the right company to invest in can be difficult, especially for investors who are still wary of Internet stocks following the tech bubble crash of the early 2000s.
It doesn’t help that some social media companies are still stuck in start-up mode and have yet to generate a profit. Social media companies are tough to understand and even harder to value. Nonetheless, the industry has a bright future.
Luckily, The Casey Report has done its research, and discovered a low-risk way to play one generation’s obsession. The best thing about this investment is that the money is just pouring in right now. Sign up for The Casey Report today to learn about this pick and other big-picture ideas.