Welcome back. Like it or not, the holiday shopping season is upon us. Whether you're braving the malls or going online, make no mistake. This is the most important time of the year for retailers. So what kind of season is it cracking up to be? Joining me for some perspective is Damian Fernandes. He's the lead manager of the TD Balanced Growth Fund and the TD Diversified Monthly Income Fund. And we're talking about new kids in retail right now, and we're talking-- New kids on the block. Yeah, that's right. Yeah. So everything that's going on, and you've got a couple charts here, which I think sets up the story nicely. So let's start with this one. You've got a consumer confidence by age graph. Let's bring that one up so people can look at it. And the one thing I was just going to say is, people who work in the markets, up and to the right is always a good thing. Exactly. But the right hand side of this chart, I mean, shows both, I guess you got here, under 35 and over 55. Everyone's looking really optimistic. So just to describe that, Kim, the chart, the blue line is what we'll consider millennials, under 35. And the red line is baby boomers, above 55. Right? And what you see is that millennials are a perennially optimistic bunch. The blue line is always above the red line. But more recently, the red line, particularly last year, as economic growth was becoming more widespread, you see the red line actually take a sharp move up. And where we're sitting right now for both lines-- so both millennials and baby boomers are feeling the most confident they have since December 2000. So 17 years of data, or 17 years has passed, and we're back to the levels we were in late 2000s. I'm always-- I find that incredible, just given the kind of the state of the world. Oh, completely. But I'd say the state of the-- like, I'll say high-level macro stuff. But I'd say the low-level kind of, I know jobs and-- Inflation. Incomes, inflation. How people feel on a day-to-day basis hasn't-- is at the best level it's been in close to two decades. Let's bring this up as well. You brought another chart in here, which is talking about earning power. So they're confident, and people are making money at the same time. Yes. So let's bring that one up and show people, because there's some-- I don't want to give away your headline on this, but there's a transition in power. I think so, exactly. And I don't want to offend any of your viewers by saying this, but before, economic growth was really driven by baby boomers, because they were the bulk of the population and had the most money. And you see them, they're in the red bars over there. Sorry, it's the red-- yeah, I think it's the red bars over there. And no, sorry, that's millennials, the green bars. But the red bars, which we focus on, are actually millennials. So to the left, you see the number of millennials. So first of all, there are more millennials in the workforce now than there are baby boomers. There's more of them. The middle chart is just-- the middle bars are how much money they make. So let's put some numbers to this. Boomers, because they're in the workforce for a longer period, make more money on an annual basis, close to $50,000, whereas that number for millennials is a little over $40,000. But just because boomers make more money, the aggregate consumption pie, it's getting smaller for them, because they're retiring at a faster rate, and millennials are larger. They're a larger cohort. And their income levels are increasing. So that's that last bars. And what we find is that the amount of consumption that millennials can generate is now close to and will start overtaking boomers. So it's critical for retailers, right, because the historical retail function was satisfying this baby boomer group. How can I sell to them? How can I sell flat-screen TVs to them? Whereas the millennial consumption group is very different in what they're looking for. They're not really looking for goods. They're looking for a differentiated experience. They're looking for identity. So we have to think about these things going forward. Yeah. So I think-- and I'll let people know, we're going to come back. We're going to end this with a couple of names to think about. But again, we've established that millennials are very confident. They're growing, in terms of their influence, in terms of the money they have. Let's delve a little deeper, if we can, into the what and the how. You talked about identity and experience, but also where they shop to get these things. And I know you and I were chatting earlier about Black Friday and kind of that-- I think it's a pretty good illustration of what's going on. So the interesting thing is Black Friday, overall, at the aggregate level, was pretty successful. But when you actually dig deeper, you found that online sales were up 18%, and traditional bricks and mortar, going into a store and buying goods, that was down 1.5%. So we've had this bifurcation take place, right? Because the consumption patterns of the people now who are the largest group with money are moving more towards online as opposed to just the traditional pattern. So you have what we'll call in retail this divergence. And more importantly, even if you're selling a good, it's not just selling a good that's-- it's not good enough anymore. It has to be an experience around selling that good. It has to be, for example, if you're selling-- Nike isn't selling shoes. It's selling a healthy lifestyle. Starbucks isn't selling coffee. It's selling your personalization in a cup. So let's bring it back to names, although I think you kind of gave a little bit of where-- I did. I know. I preempted you on that one. That's OK. No, no. But I mean, so, if you were to say what companies, again, for an investor going, OK, great, got it. Millennials, important, have lots of money, doing it differently. Who's doing it well for millennials then? Well, I think, first of all, if you believe that millennials are going to increase their consumption of experience-related items, so let's think about something as travel. What we find is that previously, if you're in the baby boomer generation, you would want to-- you would buy a good-- say a flat-screen TV. And right now, millennials, we find, are actually saving a lot more for vacations. So let's try and find companies that cater to that experience. One of the names we really like is Priceline. So Priceline is the largest online travel agency. So if you believe that people are, A, going to take more vacations, for example, visit the Greek islands and post their pictures on Instagram, and that affirmation from the number of likes on their Instagram account is what builds utility for them. If you believe more of that's going to happen, and you believe that people are going to do that, are actually going to purchase vacations online as opposed to traditional walking into a travel agent, this is an ideal company. Priceline is the largest online travel agent. It operates in over 200 countries. It owns Booking.com, which is the largest site for booking hotels in the world. What about-- I want to squeeze a couple more names in there. And I'm going to ask you for 10 seconds. So Nike, and Starbucks, and even Sherwin-Williams. Oh, yeah, yeah. Sherwin-Williams is a great idea, because we talked about it initially, how millennials are actually reaching that point of their lives where they're, A, earning income, but also that age point where they're building families and growing. So home improvement in the US is facing tailwinds. There's more consumption for building products. And Sherwin-Williams is-- it's actually a company that is selling paint, but you're selling paint-- for example, if Sherwin-Williams, if you buy paint from them, and you go into their store 10 years later, they'll have the paint you bought, that special customized paint, on file, so you can actually replace it. So companies that are catering to this individuality are the ones we see will be successful. Awesome ideas. Damian, thank you very much. Sure. Always a pleasure. If you want to-- it's a pleasure to have you here. And guess what? We've got more with Damian coming out. It's going to be next week. If you go to moneytalkgo.com, and we'll have another segment where Damian is going to talk more about the millennials and retail, some interesting opportunities there. And a reminder, always do your own research.