So much for a millennial-driven, tax-cut fueled consumer spending boom this spring that sends stock prices ripping higher.
Those between the age of 22 and 37, aka millennials, told Bank of America Merrill Lynch in a new survey they are more inclined to save their Trump tax cut rather spend it. Millennials said they are less inclined to use the tax windfall for day-to-day spending (sorry Starbucks (SBUX) - Get Report and none-dead malls across the country), with only 8% of respondents reporting that would be their intention.
On the positive side of things, millennials suggested they will take their newfound money and use it to invest. TheStreet, founded by Jim Cramer more than 22 years ago, is here to help those millennials that are interested in finally getting into stocks.
"Once again, that suggests millennials are thinking about their future financial prospects," the report's authors said. Those not too keen on going all in on stocks say they will use the tax cut to pay down debt, mostly school loans.
The reluctance of millennials to spend their tax cuts could hurt the stock prices of many consumer companies. Shares of department stores such as Kohl's (KSS) - Get Report and an electronics retailer like Best Buy (BBY) - Get Report have run up this year on expectations of consumers shopping till they drop this spring/summer. Considering there are more than 83 million millennials in the U.S., that's a big pool of humans letting down some of the country's biggest companies.
Kohl's is a holding in Jim Cramer's Action Alerts PLUS.