The millennials are an age demographic of people that were born between 1980 and 1995 and they currently make up 25% of the US population which in 2021 is around 333 million.
So right now, the oldest millennials are aged around 40 and the youngest are aged around 26. The age demographic of 25 – 50-year old’s are the biggest spenders in the world and between the ages of 25 – 40 most people get married, buy a home, start a family and this demographic of people are the ones that really drive the global economy, spending more money than any other time in their lives and of course driving credit card growth. When we are over the age of 50 we spend less and less and under the age of 25 we just haven’t got very much.
The US currently has around 30% of all global wealth and in the next 20 years given the current economic trends this is tipped to grow to 50% because of the incredible fact I am about to share with you.
There are two reasons why I believe the stock market is about to blast off for the next 20 years but one of the reasons is like a booster shot and is far bigger than the other.
During the next ten years the millennials will continue to build their own wealth, earn higher salaries, wages growth will likely continue to expand in the USA and interest rates will like stay relatively low compared to historical levels, particularly in the next 10 years.
Tens of millions of millennials have opened broking accounts in 2020 and 2021, more than any other time in history and a higher percentage of millennials will continue to find the stock market in the years to come. Millennials will be eager to continue to grow their wealth however a desire to grow their wealth will not be the catalyst to blast the stock market higher.
What will have the biggest impact on the stock market will be the millennials inheriting the 75 trillion dollars of wealth that is going to be left to them from the baby boomers, who were born between 1946 and 1964. The wealth transfer that we are about to see in the next 10 to 20 years is going to be stratospheric and with so many of the millennials having a taste for the stock market already volumes will only continue to exponentially grow.
Don’t get me wrong, the stock market will not be a rocket ride to the moon, more like a rocket rollercoaster ride that keeps on going up, but will have sizeable dips along the way. For those investors who continue to buy the dips the probability is you will be leaving your family a small fortune (maybe even a very big one) when it comes time for you to hand over the reins.
Now is not the time to sit on the sidelines and watch the market rise and fall, you want to buy low and sell high into a rising market full of massive potential.
The problem is finding a concentrated number of companies that suit your investment needs that are in a dip about to rise.
How do you do the research, which companies do you buy, how do you short list them, how many shares should you buy and how do you know you are not paying too much?
The good news is that all we talk about at Trading Mastery, finding the concentrated number of high-quality global growth companies to own that in the coming 3, 5 and 10 years have the potential to see their share prices deliver you outstanding returns on investment.
If you’d like to dive deeper into who we’re finding, then, I invite you to come along for free to my next live online training event where I’ll share with you how we value companies correctly and build rock solid portfolios to build wealth, not only for 2021, but for years ahead. Simply enter your details below for your free pass.