Profiting From the Migration

Michael Barone does an excellent job in today's WSJ of laying out the tectonic shifts in the US population that will affect our political landscape years hence. This is George Will's famous observation that the epicenter of the country is moving south and west at a given rate. Given Barone's analysis you could update this to say that the epicenter of the country is moving inland over time.

I've noted this several times. What's the big deal? Firstly, it is important and interesting. Secondly, it spells opportunity. Land, obviously, in the right cities will become more valuable as this phenomenon plays out. Don't forget banks too. If Joe Jerseyan takes that job in Denver, packs up the family and skeedaddles, his bank deposits are coming with him. He'll likely need a mortgage when he gets there too. Small, customer-focused banks in these growth areas will pick up business (big banks may too, but small banks are a purer play on local growth). And with the yield curve flat these days, bank stocks are at cyclical lows. In each of the growth areas that Barone cites there is likely to be one or two dynamic, well-managed banks. Happy hunting.