5 Hot Stocks for Boomer Consumers

5 Stocks Both Boomers and Investors Should Love

Can a baby boomer get a little love? Better yet, I’d settle for a little R-E-S-P-E-C-T, as Aretha Franklin might say. Perhaps I’m a bit sensitive
because I’m a member of the baby boomer generation (I just made the 1964 birth year cutoff), but it seems to me that my generation’s collective wallet
is being disrespected.

We boomers are in the prime of our financial lives, and we’ve worked for many years to put some decent money in our pockets. And while I don’t speak
for every boomer, I happen to enjoy spending the money I’ve worked so hard to earn.

Baby boomers now are between the ages of 45 and 63, and we are approximately 77 million strong. In the next five years, we’ll all be 50-plus, and
we’ll account for an estimated 40% of adult consumers. More importantly, we will be the group with the most spendable cash. And while marketers may
concentrate on younger generations, we know that we will continue spending our money on what we want.

So, what will boomers spend their money on? And what stocks will benefit from the boomer set? Let’s take a look at the five stocks both boomers
and investors should love.

NEXT – Carnival Corp. (CCL)

Carnival Corp. (CCL[2])

I’ve never been on a cruise, but I know plenty of boomers that have. More importantly, I know plenty that plan to go on cruises once they retire.
That’s why our first boomer stock is Carnival Corp. (CCL[2]), the cruise ship and travel company. As of
January 2009, the company operated 88 cruise ships in North America, Europe, Australia and New Zealand.

Carnival shares were recently upgraded by Bernstein Research, with analyst Janet Brashear saying the cruise industry will benefit in 2010 from increased
European travel. I agree with Brashear, and I also think if you look at the demographic of those European bookings, you’ll find a whole lot of baby
boomers.

NEXT – Allergan (AGN)

Allergan (AGN[3])

I admit it, I’m vain. I like to look good, and so do the baby boomers I know. In fact, many baby boomers are going to great lengths to make sure
they stay looking young, and that brings us to our next stock — Allergan (AGN[3]).

Allergen is the maker of what has become the quintessential baby boomer youth elixir, Botox. The company’s marquee product is being injected in
forty and fifty somethings at an increasing rate, and I fully expect the strong demand for this product to continue. After all, we may be getting
older, but we don’t have to look like we are.

NEXT – Cynosure (CYNO)

Cynosure (CYNO[4])

Now if Botox doesn’t do the trick, then we boomers are going to resort to more extreme measures to stay looking young, and that means we need the
products from Cynosure (CYNO[4]). The company develops and markets aesthetic treatment systems for the
dermatology and plastic surgery markets.

Cynosure’s big product is the laser. The company’s lasers are used to remove tattoos and treat skin conditions, but their biggest use is to treat
varicose veins. As boomers — particularly female boomers — age, the market for laser varicose vein treatment is likely to rise substantially,
and that’s great news for Cynosure.

NEXT – Pulte Homes (PHM)

Pulte Homes (PHM[5])

Boomers like hanging out with other boomers, and as we get older many of us plan to move into communities specifically designed with our needs in
mind. That’s why our fourth boomer stock is Pulte Homes (PHM[5]).

The homebuilder specializes in retirement
communities. In fact, they built the first-ever Del Webb retirement community back in 1960. Today the Del Webb retirement communities number more
than 50 across 20 states.

Pulte shares took a nosedive in late 2008 and early 2009, as the housing crisis hit full stride, but now that the worst is over for housing, I expect
this company — and this stock — to continue building on the success it’s enjoyed over the past two decades.

NEXT – iShares Nasdaq Biotechnology (IBB)

The iShares Nasdaq Biotechnology (IBB[6])

As smart as we boomers are, we don’t yet know what medical innovations will come to market in the next five, 10 or 15 years. We do, however, know
that most of the new innovations in medicine will come from the biotech sector. As boomers age, it’s just a reality that we will be consuming more
medicine and more medical care.

To make sure we have the biotech sector covered, our final boomer stock is actually a basket of the best biotech stocks out there — the iShares
Nasdaq Biotechnology (IBB[6]) exchange traded fund (ETF). This ETF is designed to move in concert
with stocks that comprise the Nasdaq Biotechnology Index. This ETF can be volatile, but volatility doesn’t bother us boomers. In fact, it just adds
a little spice to our already rich lives.

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