Boomernomics – What is it, definition and concept

Boomernomics, simply put, is about investing in businesses or companies that offer products or services aimed at Baby Boomers. This, taking into account that said population group has certain consumption habits.

The term Boomernomics was coined by Williiam Sterling and Stephen Waite in their book “Boomernomics: The Future of Your Money in the Upcoming Generational Warfare” (Boomernomics: The future of your money in the next generational war, if we translate it into Spanish).

At this point, you may be wondering why base an investment strategy on the demand of a particular age group? Well, according to the Investopedia portal, these people concentrate 51% of the wealth in the United States. In other words, it is a very attractive target audience due to the assets it possesses.

We must remember that the Baby boomers are those individuals who were born after the Second World War, when a demographic explosion was registered in the United States. At the time of writing this article, they are between 58 and 76 years old. This means that they are people who are, for example, in the highest management positions in the corporate world. In addition, they hold a large part of the most relevant public positions, in the mayor’s offices, Congress, ministerial portfolios and even the presidency.

Another point that we must clarify is that the Baby boomers and their characteristics are clearly identifiable in the United States. However, each country has its own reality.

Characteristics of Boomernomics

The characteristics of Boomernomics are mainly the following:

  • It is a long or medium-term strategy, taking into account that it consists of investing in businesses with an expectation of growing demand in the future. It is not a short-term investment, like buying and selling currencies.
  • The strategy may consist of investing in companies of goods considered necessary or essential such as health care or pharmaceutical products, such as those that relieve muscle pain, for example. Likewise, older adults tend to demand more healthy foods and drinks, with additives such as omega 3.
  • Another strategy may be to invest in non-essential goods businesses, such as those for entertainment. Let us think of those older adults who, after accumulating money for many years of work, want to travel the world. Thus, they can demand tourist services.
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Example

An example of applying the Boomernomics strategy could be investing in shares of pharmaceutical companies, given that these companies have as important clients older adults who consume not only medicines, but also food supplements and other similar products.

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