The Baby Boom Boom

     The first baby boomers, born in 1946, turn 60 this year. But 60 isn't what it used to be. The generation that changed society when it was young is now changing and redefining aging. And since the baby boom generation wields the greatest buying power in history, companies that pay attention to and heed the desires and needs of boomers stand to reap enormous rewards.

      For investors, as well as marketers, it's smart to look at the baby boom market (people born between 1946 and 1964) in terms of a number of themes and subthemes that tap into the generation's psyche and socioeconomics.

VANITY
A big part of the baby boom psyche is feeling and looking youthful. Research studies say baby boomers see themselves as 20 years younger than they really are. In fact, according to Yankelovich Partners, the polling company, "Baby boomers literally think they're going to die before they get old." One study found that "boomers defined old age as starting three years after the average American was dead." Boomers want their appearance to reflect the youthfulness they feel, so they're turning to new aesthetic improvement procedures to smooth out wrinkles, remove hair from unwanted spots, improve their skin tone and eliminate unsightly veins.

     Combine the desire to look youthful and energetic with today's acceptance of cosmetic procedures and you have a big reason for the growing boom in cosmetic laser procedures. And it will only get much bigger. Not only are laser procedures very effective and noninvasive, but they're fast - most can be done within a half hour at the doctor's office.

     Laser and light-based gear are not only being snapped up by dermatology specialists, but also by general practitioners who want a piece of this lucrative business. The growth in laser business extends beyond America to Europe and Asia. Major players in aesthetic laser procedures include Candela (NasdaqNM: CLZR), Cutera (NasdaqNM: CUTR), Laserscope (NasdaqNM:LSCP) and Syneron (NasdaqNM: ELOS).

PHYSICAL REJUVENATION
To a certain extent this is tied to vanity, but it's also linked to a change in attitude. Unlike previous generations, many baby boomers expect to continue the activities they've enjoyed all their lives as well as take up new challenges, including jogging, kayaking, basketball, working out, skiing and tennis, to name a few. But it is inevitable as people age that joints wear down and ligaments tear. Instead of giving up and retreating to an inactive lifestyle, many boomers will decide to undergo hipand knee replacement and other surgical procedures that enable them to continue a very active lifestyle.

     Look at companies that offer the latest orthopedic medical devices, including Stryker (NYSE:SYK), Biomet (NasdaqNM:BMET), Zimmer Holdings (NYSE:ZMH), Smith & Nephew (SNN:NYSE ADR) and Johnson & Johnson (NYSE:JNJ) - the company's orthopedics division has exclusive rights to sell mobile-bearing knees in the U.S.

     And while baby boomers are involved in a wide spectrum of sports, golf will be among their favorites. Look for companies that offer advances to make the game easier. Golfers are notorious for being on an endless and often futile quest for anything that might help make them play better. Adams Golf (ADGO.OB) offers a variety of hybrid clubs which are easier to hit with than long irons. GPS Industries (GPSN.OB) offers Wi-Fi and GPS-enabled multimedia communications and management solutions for golf courses.

WELLNESS
Boomers want to feel good, and remain alive to the possibilities of life. It's one of the reasons they continue to be the largest consumers of wellness products and services. They are interested in nutritional supplements, nutraceuticals, diet products, spas, yoga, meditation and other activities which offer physical and spiritual benefits. Look for companies that are actively incorporating wellness targeted programs in their products and services. For instance, Amica (ACC:TO), a developer of retirement residences is specifically targeting this audience with its Wellness & Vitality Residences.

      Aging comes with a host of related illnesses. But boomers don't expect these diseases to stop them.Yankelovich notes, "They fully expect that advances in healthcare and genomics are going to enable them to live past 100."

TRAVEL AND LEISURE
Baby boomers not only have more money, they also have the time to spend it on travel and recreational activities. On the hotel front, look for resorts that offer the amenities and activities baby boomers enjoy. Fairmont Hotels & Resorts (NYSE: FHR) owns a large basket of luxury resort hotels. Marriott International (NYSE: MAR) and Starwood Hotels & Resorts Worldwide (NYSE: HOT) have many resorts in their property portfolios.

     Hotels that offer gaming have enjoyed healthy growth in the past 5 years, and will continue to grow as they attract gambling boomers. Possibilities include Harrah's Entertainment (NYSE: HET), Park Place (NYSE:PPE), MGM Grand (NYSE: MGG), and Station Casinos ((NYSE:STN). And certainly Steve Wynn (Nasdaq: WYNN) knows a thing or two about appealing to people who like gambling in style.

     Many boomers will choose to take their vacations to the seas. Keep an eye on Carnival Corp. (NYSE: CCL) and Royal Caribbean (NYSE: RCL). And a growing number of boomers are attracted to the new mobile home lifestyle, featuring updated and more luxurious recreational vehicles from companies like Monaco Coach (NYSE:MNC), Fleetwood Enterprises(NYSE:FLE), Thor Industries (NYSE:THO), Winnebago Industries (NYSE:WGO), Coachmen Industries (NYSE:COA)..

      As for travel services, Cendant (NYSE:CD) was a company to look at. Now it's more than that, having recently split off into 3 public companies, focusing on real estate, travel services, and hotels and car rental.

RETIREMENT LIVING
The old concept of "retirement" may soon become passé. Many boomers will decide either to continue working or work part-time. And with the growth of the Internet and broadband, expect the small home office market (SOHO) to boom. Even home architecture will change. Studies show that the homes in retirement communities that have been built in the past 30 years don't suit the tastes of baby boomers. Look for edgier, loft-like spaces.

      Builders like Pulte (NYSE: PHM) and Toll Brothers (NYSE: TOLL) are changing their floor plans to accommodate changing tastes. Del Web, a builder of "retirement communities", has opened up a community near Chicago for boomers who want the amenities of retirement but don't want to quit working. Floor plans have been designed to accommodate home offices.

These are just some of the themes and companies to keep an eye on as baby boomers redefine aging and retirement, and wield their awesome buying power.