Experts believe that with the transition of millennials to middle age, the flow of investments into the cryptocurrency and stock market will increase.
The theory of a shift in market structure towards high-risk assets
put forward co-founder of the analytical company Fundstrat Global Advisors Tom Lee. He reckons that $ 2 trillion annually is inherited by millennials (born in the 1980s and 90s) from the baby boomer generation (born after World War II to 1964).
If the current demographic and economic situation in the United States continues, millennials will inherit $ 75 trillion in 20 years. Unlike the older generation who invests in bonds, real estate and commodities, the younger generations invest in cryptocurrencies and company stocks. These people are better versed in financial instruments and are more risk averse.
According to analyst firm Finder.com, about 17% of millennials invest in crypto assets, as opposed to just 8% of baby boomers. The baby boomer capital is shrinking every year, and the share of millennials is growing. The market is increasingly following the preferences of millennials. There is a structural shift in investment towards high-risk assets. This trend is important to consider when investing, especially for those who invest for a long time, says Tom Lee.
“A bull market until 2038 is very real if the demographic situation in the US continues.”
In favor of his theory, he said: “The peak of growth in the stock market since 1900 coincided with the transition of the next generation to adulthood.
Tom Lee’s theory of the bullish trend in the cryptocurrency market
supported Cathie Wood, founder of one of the fastest growing investment companies ARK invest. Based on research by Tom Lee, the expert stated that she believes in the growth of cryptocurrency and stock markets, in which millennials will invest.
Millennials are excited about new technologies that are rapidly evolving today, she said. Generation Y is comfortable in a fast-paced digital world, unlike the conservative baby boomers who are used to investing in bonds and commodities.
According to research by the personal finance portal SimpleMoneyLife, 67% of millennials prefer to invest in bitcoin over gold.
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