Millennials are expected to drive the S&P 500 up by over 300% before the end of the decade, according to Fundstrat’s Tom Lee.
- Lee expects a return of at least 11% next year and could surge by 313% to 19,349 by 2029, translating to a compounded annual growth of 20%. This is above the index’s historic average ranging between 7% and 10%.
- Lee’s bullishness is driven by millennials, as he noted that the market boomed when the previous generations entered the age range of 30 to 50 years old. The current most populous age group in the US is about 31 years old.
- Lee noted that the number of adults between 30 and 50 had declined until 2008, as the impact of the Great Recession was reflected. The age group is expected to grow until 2026 and will continue to do so until decelerating in the early 2030s.
A number of mega-cap companies were founded by entrepreneurs who were in their 30s at the time.
Source: Business Insider