In this video interview, Bill Smead, portfolio manager of the Smead Value Fund, talks about the experience of many Baby Boomers and compares it to an even larger group… the Millennials or “Echo Boomers.” Then he talks about why the Echo Boomers are a significant investment theme of the Smead Value Fund.
According to the U.S. Census, there are approximately 80 million Baby Boomers aged 48-67. Many experts are focused on their retirement from the U.S. workforce. What few realize is that there are 87 million Millennials aged 18-37. There are more Echo Boomers (or Millennials) than Baby Boomers! What’s different about young folks nowadays is that they wait longer to get married and have children.
In Bill Smead’s opinion, this delayed “household formation” should provide a powerful stimulative effect to the U.S. Economy. Remember the 1980s and 1990s? History might not repeat itself, but maybe it echoes?
Additional disclosures from this interview can be seen at the Vimeo page