One of the best parts of my job is talking with people. I like to get a sense for what they’re most interested in, and these days more and more investors are asking for my insight on what’s next for Wall Street. What are the budding themes that are shaping our economic future and driving the next generation of investor wealth?
It’s the right question to ask, and as we talked about last time, you’d be surprised how few people on Wall Street know to ask it. There are several exciting and fascinating mega trends unfolding that are sure to give us plenty of opportunities to make good money, and I’ll be sharing them with you in the next few articles.
One of my favorite trends that investors simply can’t afford to ignore is the millennials – it literally doesn’t get more “next generation” than this! You’ve probably heard plenty about this rising demographic, and it might not all have been good. Millennials tend to get a bad rap for being entitled, dependent on their parents and tech-obsessed. But this group is also resourceful, creative and entrepreneurial-minded – after all, these are the people who made blogging into a more lucrative career choice than banking!
It all starts with one astounding fact: We are witnessing the beginning of the greatest wealth transfer in U.S. history from the once-dominant Baby Boomers to their children, the emerging millennial generation (generally born between 1980 and 2000). And investors who are shrewd enough to realize the immense potential this demographic shift holds are in an outstanding position to benefit early and often.
I love talking about this trend because everybody stands to benefit. Whether you are a retiring Boomer or a millennial yourself looking to invest for your family’s future, there are so many exciting ways to profit. There are three million more millennials than their post-war parents, with the oldest just hitting their mid-30s and the youngest still in college. They’re getting ready to take the economic spotlight as they flood the workforce, start families and enter their prime earning years.
According to a report conducted by Accenture, millennials spend roughly $600 billion each year, and by 2020 – just three short years from now – that number will more than double to $1.4 trillion annually in the United States alone. This would represent 30% of total retail sales. Wall Street may not be looking there quite yet, but I’m not waiting and you shouldn’t either!
So the question becomes – what are the best ways to play this impending economic boom? And if you’re part of it, how can you profit from the trends you already see growing around you every day?
Keep an eye out for my next article for the answer!