We’re in a ‘boomer renaissance,’ top hedge fund manager says — naming sectors and stocks to play it
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Top hedge fund manager David Neuhauser says the world is in a “boomer renaissance” and investors should be betting big on certain sectors that play the theme. The world is aging rapidly, and sectors such as tourism, health care and biotech will benefit from that, according to Neuhauser, who is founder and chief investment officer of Livermore Partners. Investors should focus on areas that are “tailored to wealthy boomers” who want to spend on their lifestyles and on improving their health and well-being, he said, adding that examples include weight loss drugs and traveling and cruises. “They are the one demographic which owns the most assets (homes, stocks, bonds, etc) with low fixed rate mortgages,” Neuhauser said. “A lot of those individuals also have cash, and they have money in the money market accounts, so they have a good income stream as well and that helps support their lifestyle,” he told CNBC’s ” Street Signs Asia ” last week. Big Pharma in particular has “a lot of cash due to these aging boomers,” Neuhauser said. He said large pharmaceutical companies may now acquire biotech firms if solid initial results are produced, instead of waiting for the completion of late-stage trials. This, he said, could result in more acquisitions. He told CNBC Pro, “I think the world is in this boomer renaissance now and there are some stocks that are seeing great moves.” He added that the stocks “are not mega tech which shows you other areas tied to the wealth [effect] are helping broadening out gains.” Below are the stocks he named and the buy ratings and average upside given by analysts covering them, according to FactSet.
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