Investors and strategists mostly have mixed feelings about the short-term outlook for the markets and economy.
However, most experts are bullish about longer-term trends.
One trend that often gets overlooked is the “echo boom.” This is the expectation that the number of baby boomers’ grandchildren will be bigger than that of the boomers themselves.
In his “Raging Bull Thesis,” Citi’s Tobias Levkovich argues that this echo demographic is entering the age where they will start saving more aggressively, which means stocks will be bought pretty aggressively.
JP Morgan’s Tom Lee has also been pointing to the “echo boom” as a reason to be bullish on the U.S. housing market and durable goods industry. Lee notes that there is currently a rare synchronised boom in both babies and adults.
Here’s the relevant slide from Lee’s latest report.
Photo: JP Morgan
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