BERWYN, Pa.--(BUSINESS WIRE)--Demographics can influence the stock market’s destiny. As a result millennials, the generation born after 1980, may be destined to drive a new bull market in stocks over the next two decades, according to the latest position paper by Turner Investments.
Turner, an employee-owned investment firm based in Berwyn, Pennsylvania, publishes position papers quarterly that present the firm’s viewpoint on investment-related topics.
Titled Could millennials lead the next great bull market in stocks?, the paper was written by Bob Turner, chairman and chief investment officer.
In the paper, he notes that “millennials are perceived as lacking favorable job prospects, financial savvy, and an interest in stock investing. They’ve even been derided as the ‘Peter Pan’ generation for supposedly putting off growing up.” But he doesn’t believe their prospects are so dire. Indeed, he cites seven reasons why he believes millennials could fuel the Great Bull Market of the 21st Century, similar to the Great Bull Market of the Century that ran from 1982 to 2000:
- The millennial generation is even larger than the baby-boomer generation.
- Millennials’ financial struggles thus far are typical of early adult life and are likely to be overcome.
- The macroeconomic headwinds like high unemployment that millennials are facing are probably temporary.
- Despite their financial troubles, millennials are savers and are already investing in stocks.
- Millennials are generally unflappable optimists and are willing to take risks.
- Millennials are putting emerging nations in a demographic sweet spot.
- Baby boomers once faced macroeconomic headwinds comparable to those of millennials. But the boomers in their peak earning years were able to invest in stocks and drive the Great Bull Market of the Century from 1982 to 2000.
To read this second-quarter 2012 position paper in its entirety, see the Turner Investments Web site http://www.turnerinvestments.com/turner-position-papers/. Or call 484.329.2407 for a free copy of the paper.
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Turner Investments, founded in 1990, is an investment firm based in Berwyn, Pennsylvania. As of March 31, 2012, we managed more than $13 billion in stocks in separately managed accounts and mutual funds for institutions and individuals.