Fund managers turn their focus to millennials; Aston Martin: ungroovy, baby

  • Are you a millennial? The old clichés of millennials about living with parents and not being serious about their careers are gradually proven to be wrong. “People like to laugh about millennials but the data are irrefutable.”
  • Asset managers are now crafting strategies to back companies that can capture millennials’ preferences — at a time of unrelenting pressure on their own top lines.
  • Investment products that target millennials naturally include technology stocks but also focus on builders that specialise in starter homes and apparel companies.
  • In the US, millennials will account for three-quarters of workers by 2030. Higher incomes will push the group’s spending 17 per cent higher within five years while Baby Boomers (born between 1946 and 1964) will spend 10 per cent less, according to Goldman Sachs.

• On Wednesday, Aston Martin warned that sales to dealerships would be flat for the year. The shares crashed. They have shed two-thirds of their value since October’s overpriced IPO.
• Margins are only positive because Aston Martin capitalises so much of its research and development costs. A less optimistic accounting policy would leave the group with an operating loss of £70m.
• The real issue is the lack of cash flow. Investors would have to stump up fresh capital if Aston Martin struggles to pay its bills.
• To fulfill promises made at the time of IPO, wealthy Chinese motorists would have to buy plenty of these top-end jalopies — and this at a time when a trade war has damaged confidence.