The defining demographic group of the last century, the US baby boomer generation, is aging. This group has been the focus of advertising, product development, and movie and book topics for as long as most of us can remember. The word is that advertisers are starting to look to a younger set to sell everything from electronic gadgets to cars. It would seem a little silly to write off the buying power of such a large demographic segment of US society even when baby boomers took such a hit in last year’s market meltdown. Trading baby boomers may still make the active trader a tidy profit. The question is still just what are boomers buying?

Trading baby boomers can still be profitable even though they may not be the youngest and trendiest anymore. What are boomers buying is still the question. The answer is that this defining demographic will soon be buying Depends adult diapers and hip replacements. So, “what are boomers buying” is a relevant question for consumer goods and medical prostheses. Trading baby boomers may mean trading in genetic engineering companies, medical product companies such as St. Jude Medical and Medtronic.

Regarding what are boomers are buying, or will be buying, a few years back Medtronics endowed a chair in stem cell research at nearby University of Minnesota. Medtronics won’t do stem cell research but they, and others like them, will provide the delivery systems for implanting cartilage cells grown from stem cells in the knees of aging baby boomers thus making many joint replacement procedures obsolete. Having the basic research done close to your home office is a smart move.

What are boomers buying? It may soon be a cure for diabetes. Again, with stem cell research, we may soon see the ability to grow insulin producing pancreas cells from stem cells so that diabetics will be cured of their inability to produce insulin. Looking at the diseases of aging for the aging boomer population will help a trader understand the answers to the question, what are boomers buying and why?

There is a conservatism that comes with advancing age to which booms are not immune. The answer to the question what are boomers buying is probably not aggressive or risky investments, especially after last year’s market meltdown.

Thus in trading baby boomers the question “what are boomers buying” may well be a better question to ask than what are boomers investing in? Still, not every boomer lost all of his money in last year’s meltdown. So, there is a very large group of like thinking people who are very capable of moving the markets in a big way if they are impressed by a stock’s promise. Having an idea of how the aging baby boomer mind works will not only help one know what baby boomers are buying but what unique situations will trigger a massive move of money either in or out of a stock or a market sector.

What are boomers buying is probably a lot less about just causes and a lot more about a secure financial future. The demonstration generation needs firm up their retirement savings in preference to marching for another cause.

In the end it may be wise to watch stocks of companies that make Depends adult diapers as well as the high tech companies that will genetically engineer the future to know what boomers are buying and why. As usual staying a step ahead of the crowd will help you be there when a stock moves. Having a strong trading plan will help you make money trading baby boomers.

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