For Generation Y investors, deciding where and when to invest should be all about the time horizon, according to Bob Sullivan of Satuit Capital Management.
"They are certainly young enough to be involved in a lot more riskier type of equity allocations," he said. "They have more time to invest, and they have more time to get good, solid returns over the long run."
Here are Sullivan's recommendations for the estimated 70 million 14- to 28-year olds:
Smith Micro : This tech savvy generation will want an even broader experience with technology, so investing in this sector is a smart choice, Sullivan said. Smith Micro allows network users to download music directly to their cellphones, a trend that will not die out, he said.
Monster.com: Because those in Generation Y are not afraid to move jobs, they will be nomadic at the beginning of their professional lives, Sullivan said. They will look to monster.com for the next job opportunity.
"Another big theme with the Gen Y'ers is that their employment is an experience for them," he said. "It's not necessarily a job. They're looking for something that's going to actually fulfill them internally as well."
Bare Essentials: Green markets will continue to grow, and so will this organic cosmetic company, Sullivan said.
"This Gen Y is clearly the most environmentally concious generation that we have so far," he said. "I think that as a consumer, these folks are going to be looking for those type of consumer products that are natural, are environmentally friendly [and] environmentally safe.
Disclosure information was not immediately available for Sullivan or his company.