Here Come America’s 23-Year Olds

The most talked about demographic in America is the baby-boomers, who are rapidly entering their retirement years.

But the baby-boomers also had children, who have been characterised as the echo boom.

Like their parents, the echo-boomers will have a material impact on the the economy.

“There are more 23-year olds than any other age group in the US today,” said Deutsche Bank’s Torsten Slok. “This is an underappreciated investment theme across asset classes. The fact that the echo-boomers are coming has implications for household formations and housing demand in coming years, inflows into 401(k) accounts, demand for risky assets (younger cohorts tend to put their retirement savings in stocks rather than bonds), the amount of student debt outstanding (there are more young people and more young people get an education), and as the baby-boomers retire echo-boomers will come in and take the jobs of the baby-boomers but at a lower pay.

Keep an eye on the echo-boomers.

Cotd echo boom