Millennial Trends: Travel

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One of the most interesting aspects of millennials is that even with the world at their smartphone fingertips, they would rather put their hard-earned money into experiences over material things. I think that’s pretty cool. Millennials spend an average of $1,200 on travel each year, and that number is only expected to grow – as are the ways investors can make money.

It’s no surprise that my first pick for you has an online presence. Expedia (EXPE) has been around a while and has become a dominant force in the travel industry; chances are good that you’ve used expedia.com to book a trip at some point. What you may not know is that the company also operates the hotel booking site Trivago and property rental site HomeAway (a competitor of Airbnb), letting users quickly make travel plans on the go.

Once you’ve booked your trip, you have to figure out how you’re going to get there, which brings us to the next opportunity. The airline industry hasn’t always had the best reputation, but it is seeing improvements in cash flow as well as customer satisfaction through timeliness and baggage handling. Even Warren Buffett, who had been famously averse to airline stocks, has started investing in some of the sector’s biggest names.

Many of those make up the U.S. Global Jets ETF (JETS), including Southwest Airlines (LUV), United Continental Holdings (UAL), Delta Air Lines (DAL) and American Airlines Group (AAL). That top-tier exposure makes this an attractive way to play a recovering industry that’s sure to benefit from increased millennial spending.

You can see on the chart below that JETS gained nearly 50% as it surged from under $20 last June to its recent high just under $30 on March 1. This chart really highlights the importance of when you buy and when you sell. We’ll talk in future articles about our next-gen way of identifying buy and sell points, using a multifaceted approach that includes charts, technical analysis, valuation, fundamentals and more. There are stories behind those numbers and lines, and our job is to find them.

There you have it – the top four trends that are driving one of the most exciting mega trends in the market right now and some of my favorite corresponding stocks. I have no doubt we’ll be talking more about millennial opportunities as this demographic continues to permeate the market, so stay tuned for much more on my latest investment picks and how we can profit from the next-generation companies that are ready to change Wall Street.

Thanks for reading!


Article printed from InvestorPlace Media, https://investorplace.com/moneywire/2017/04/millennial-trends-travel/.

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