If you’ve turned on your television lately, you’ve seen the headlines and maybe read some of the analysts’ reports spreading doom and gloom. The rapid spread of omicron and stories about slowdowns, shutdowns, and lockdowns have all but dominated the headlines. You’ve been told to expect higher inflation, rising interest rates, falling company earnings, and peak valuations across the stock market.
At this point, some investors are running for the hills and putting all of their money into gold bullion.
Fortunately for us, we know something that the financial media doesn’t know.
While some may be running from the markets, they’re about to be crushed by some 71 million new investors who aren’t afraid of anything. These investors are going to plow so much money into the market that they’re actually going to propel the S&P 500 300% higher, maybe more, in the next seven years or sooner.
The media and analysts don’t see what’s happening below. They’re trying to stoke fear where there is none. They don’t see what we see. And they don’t know what we know.
Demographics move markets. I’ve been beating that drum for years. And this next round of generational investors is the largest we’ve seen in decades.
New investors, some 71 million of them, are coming into the market. And they’re collectively far more important than any earnings, profit margins, or net income measures.
“They” are the millennials. And there are 71 million of them ranging from 27 years old to 44 years old now. They are starting to enter the equity universe.
And believe me, nothing moves stocks and markets higher like more buyers than sellers.
This isn’t some fringe belief either. It’s been corroborated by the finest researchers on Wall Street.
Just ask researchers John Geanakoplos of Yale University, Michael Magill of the University of Southern California, and Martine Quinzii of the University of California, Davis. Their report, Demography and the Long-Run Predictability of the Stock Market, supports what we know. They found that population booms around the 30s to 50s correspond to stock market booms.
More investors entering the stock market means a better chance for a bull market.
You probably didn’t know it, but we’re entering one of those “bull market periods” now, right on top of the raging bull market we’ve been enjoying since 2009.
The rationale is simple: stocks are now the principal vehicle for retirement-headed people who start thinking about investing in their future when they’re in their 30s and 40s. That’s where Millenials are right now.
Click here to read about where you should put your money alongside this massive influx of investors.
