How to Cash in on the Ultimate Baby Boomer Trade

This post How to Cash in on the Ultimate Baby Boomer Trade appeared first on Daily Reckoning.

More than 10,000 baby boomers are turning 65 every single day.

And I know what you fogies—ahem, I mean active seniors— are up to…

You’re finally quitting your jobs and starting to live the good life.

Lucky for you, gas is cheap. Really cheap. And with many areas of the country seeing sub-$2 gas for the first time in five years, it’s time for you to hit the open road.

And what’s the retired couple’s favorite way to mosey about the country going 40 miles per hour in a 55 zone? You guessed it: RVs. And guess what happens to be a great trade that could land you double-digit gains? RVs, as you’re about to see.

Yes, the recreation vehicle business is booming once again. After getting hit especially hard during the Great Recession, these road beasts are revving back to life…

“RV shipments dropped by over 30 percent in 2008 and again in 2009, according to figures from the Recreational Vehicle Industry Association,” U.S. News reports. “Annual shipments fell from nearly 400,000 per year in 2005 and 2006 to below 166,000 in 2009, forcing many dealerships and plants to lay off workers and some to close.”

Slowly but surely, the RV industry started showing signs of life once the economy (and the markets) got back on its feet. U.S. News notes that the industry began its comeback move by posting 46% growth in 2010.

Now, Bloomberg reports that North American RV manufacturers are expected to ship 369,100 vehicles this year– at an average price of around $37,000. That’s a 52% jump from 5 years ago, Bloomberg notes, leading to what should be one of the industry’s best years ever…

Long Climb

“Roughly 10 percent of RV owners are over the age of 54,” Bloomberg notes. “But younger cruisers are buying in as well, in part because the industry’s major players pour about $15 million a year into a collective marketing budget that has been sending caravans of big rigs around to college campuses and music festivals.”

That’s one way to get attention… and it’s really beginning to pay off. The major public RV companies—Winnebago Industries (NYSE:WGO) and Thor Industries (NYSE:THO) are each up about 5% year-to-date, compared to a flat S&P 500.

Get ready to hit the road…


Greg Guenthner
for The Daily Reckoning

P.S.  If you want to cash in on the biggest profits this market has to offer, sign up for my Rude Awakening e-letter, for FREE, right here. Stop missing out. Click here now to sign up for FREE.

The post How to Cash in on the Ultimate Baby Boomer Trade appeared first on Daily Reckoning.