MEET THE ‘ECHO BOOM’: The 80 Million People Who Will Save The American Economy

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The Great Recession may have delayed the plans of many recent college graduates.But the “Echo Boom” generation — the sons and daughters of Baby Boomers — are too numerous to be kept down.

There are 80 million of them, and they’re out to save the American economy.

All of the normal things that drive the economy — household formation, entering the workforce, etc. — will be driven by this slice of the population.

Thanks to the Echo Boom…

  • Stocks will go up
  • More households will be formed, leading to a recovery in real estate.
  • The national income will surge.
  • Lots more spending will happen.

We wanted to explain why, despite the licks they’ve taken, this group will end up bailing out the economy.

[slideshow]
[slide
permalink=”this-generation-is-also-known-as-generation-y-or-millennials-because-they-came-of-age-in-the-new-millennium-1″
title=”This generation is also known as “Generation Y” or “Millennials” (because they came of age in the new millennium).”
content=””
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[slide
permalink=”theyre-generally-defined-as-having-been-born-between-1980-and-1995-making-the-oldest-echo-boomers-just-33-if-you-conceived-to-duran-duran-you-gave-birth-to-a-millennial-2″
title=”They’re generally defined as having been born between 1980 and 1995, making the oldest Echo Boomers just 33. If you conceived to Duran Duran, you gave birth to a Millennial.”
content=””
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[slide
permalink=”there-are-approximately-80-million-of-them-compare-that-with-77-million-baby-boomers-3″
title=”There are approximately 80 million of them. Compare that with 77 million baby boomers.”
content=”Source: NCoC
image=”http://static.businessinsider.com/image/51115426ecad042d3e00000e”
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[slide
permalink=”and-eventually-they-will-be-the-largest-cohort-in-the-country-4″
title=”And eventually they will be the largest cohort in the country.”
content=””
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[slide
permalink=”they-are-less-white-and-more-diverse-5″
title=”They are less white and more diverse.”
content=””
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[slide
permalink=”their-values-are-mostly-similar-although-they-may-be-less-materialistic-than-other-generations-6″
title=”Their values are mostly similar, although they may be less materialistic than other generations.”
content=””
image=”http://static.businessinsider.com/image/511152b46bb3f7a027000013″
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[slide
permalink=”they-will-be-better-educated-7″
title=”They will be better educated.”
content=””
image=”http://static.businessinsider.com/image/51115054eab8ea462a000009″
caption=””
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]
[slide
permalink=”and-they-are-more-optimistic-and-for-good-reason-8″
title=”And they are more optimistic. And for good reason…”
content=””
image=”http://static.businessinsider.com/image/51114eaf6bb3f7e12000000b”
caption=””
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[slide
permalink=”at-some-point-housing-formation-will-return-to-the-mean-9″
title=”At some point, housing formation will return to the mean.”
content=””
image=”http://static.businessinsider.com/image/511155c169beddac6200000b”
caption=””
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[slide
permalink=”its-already-getting-there-10″
title=”It’s already getting there.”
content=””
image=”http://static.businessinsider.com/image/511156676bb3f71e31000002″
caption=””
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]
[slide
permalink=”jmpg-estimates-nearly-3-million-in-pent-up-demand-and-look-at-the-growth-rate-in-couples-data-not-available-for-same-sex-couples-11″
title=”JMPG estimates nearly 3 million in pent-up demand. And look at the growth rate in couples! (Data not available for same-sex couples).”
content=””
image=”http://static.businessinsider.com/image/511155fd69beddc26500000e”
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[slide
permalink=”theyve-already-caused-a-boom-in-rentals-this-will-eventually-spill-into-homebuying-12″
title=”They’ve already caused a boom in rentals. This will eventually spill into homebuying.”
content=””
image=”http://static.businessinsider.com/image/51113e7aeab8eae57d00000b”
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]
[slide
permalink=”and-again-the-oldest-millennials-are-in-their-early-30s–nowhere-near-peak-earnings-years-13″
title=”And again, the oldest millennials are in their early 30s — nowhere near peak earnings years.”
content=””
image=”http://static.businessinsider.com/image/511163f569bedd520700001e”
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[slide
permalink=”and-their-overall-assets-are-at-least-two-decades-away-from-topping-out-14″
title=”And their overall assets are at least two decades away from topping out.”
content=””
image=”http://static.businessinsider.com/image/511164366bb3f7c64a000001″
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[slide
permalink=”as-it-turns-out-about-one-in-three-18-to-32-year-olds-is-already-a-homeowner-15″
title=”As it turns out, about one in three 18- to 32-year-olds is already a homeowner.”
content=”Source: Kiplinger
image=”http://static.businessinsider.com/image/51115daaecad04ca4f000007″
caption=””
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]
[slide
permalink=”and-nine-out-of-10-millennials-say-they-eventually-want-a-place-they-own-according-to-a-recent-fannie-mae-survey-16″
title=”And nine out of 10 millennials say they eventually want a place they own, according to a recent Fannie Mae survey.”
content=”Source: Atlantic
image=”http://static.businessinsider.com/image/5111490a69beddaf41000023″
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]
[slide
permalink=”now-its-true-about-half-of-echo-boomers-wealth-is-in-bonds-money-market-accounts-or-cash-17″
title=”Now, it’s true about half of Echo Boomers’ wealth is in bonds, money market accounts or cash…”
content=”Source: Kiplinger
image=”http://static.businessinsider.com/image/500078c1eab8ea4a4b000018″
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]
[slide
permalink=”and-only-22-of-investors-under-age-35-many-fewer-than-in-2001-say-theyre-willing-to-take-on-substantial-risk-18″
title=”And only 22% of investors under age 35 — many fewer than in 2001 — say they’re willing to take on substantial risk.”
content=”Source: Kiplinger
image=”http://static.businessinsider.com/image/510bd055eab8ea0166000011″
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]
[slide
permalink=”but-analysts-like-tobias-levkovich-believe-that-will-change-as-the-cohort-enters-prime-earnings-age–we-know-that-the-more-30-somethings-the-higher-the-sp-goes-19″
title=”But analysts like Tobias Levkovich believe that will change as the cohort enters prime earnings age — we know that the more 30 somethings, the higher the S&P goes.”
content=”Source: Byron Levkovich/Citi
image=”http://static.businessinsider.com/image/51116e1fecad042d6e000018″
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[slide
permalink=”and-equity-values-turn-out-to-be-closely-related-to-the-age-distribution-of-the-population-so-you-can-plot-the-path-that-the-pe-ratio-is-likely-to-follow-in-the-next-few-decades-based-on-demographics-20″
title=”And equity values turn out to be closely related to the age distribution of the population, so you can plot the path that the P/E ratio is likely to follow in the next few decades based on demographics.”
content=”Source: Calculated Risk
image=”http://static.businessinsider.com/image/511166a369beddec12000006″
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[slide
permalink=”most-brands-doing-well-now-will-continue-to-do-well-in-the-future-21″
title=”Most brands doing well now will continue to do well in the future.”
content=””
image=”http://static.businessinsider.com/image/511134a7eab8eac864000011″
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[slide
permalink=”and-they-will-never-stop-buying-tech-22″
title=”And they will never stop buying tech.”
content=””
image=”http://static.businessinsider.com/image/511156b1eab8eab135000012″
caption=””
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[slide
permalink=”their-greater-tolerance-for-caring-for-their-elders-will-help-lower-medical-costs-23″
title=”Their greater tolerance for caring for their elders will help lower medical costs.”
content=””
image=”http://static.businessinsider.com/image/511151eb69bedd4f5c000005″
caption=””
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[slide
permalink=”finally-and-most-importantly-they-are-waiting-longer-to-get-married-presumably-that-means-more-economically-efficient-marriages-and-fewer-inefficient-ie-divorce-fated-ones-24″
title=”Finally and most importantly, they are waiting longer to get married. Presumably that means more economically efficient marriages and fewer inefficient (ie divorce-fated) ones.”
content=””
image=”http://static.businessinsider.com/image/5111521569bedd395900001f”
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]
[slide
permalink=”in-sum-this-better-educated-more-financially-savvy-generation-will-yield-a-higher-stock-market-higher-earnings-stronger-economy-25″
title=”In sum: this better-educated, more financially savvy generation will yield a higher stock market, higher earnings, stronger economy.”
content=””
image=”http://static.businessinsider.com/image/50e5a469eab8ea394c00000d”
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]
[slide
permalink=”more-demographics-26″
title=”More demographics…”
content=”See what America will look like in 2050 >
image=”http://static.businessinsider.com/image/5082631a6bb3f7b93200002d”
caption=””
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]
[/slideshow]