Boomers Benefit from High Rates While Millennials Struggle, Driving 'Old vs Young' Stock Trade

Baby boomers are benefiting from high interest rates swelling their savings, while millennials struggle with debt and high costs. This is driving a trade recommendation to buy "old people" stocks like cruise lines and healthcare, and avoid "millennial" stocks like clothing retailers.

The generational wealth gap has widened post-pandemic due to high inflation and interest rates. Boomers account for most spending and consumption now, while millennials pull back.

"Boomer boom" stocks recommended include American Express, cruise lines, healthcare, and home improvement. "Millennial" stocks facing headwinds include clothing retailers like Revolve.

Some investors are skeptical this trade will persist long-term, as boomer wealth will eventually transfer to millennials.

For now, boomer spending and asset ownership is propping up consumption. Bank of America economists scrapped their recession call, citing strong consumer balance sheets.