Millennials may fuel both cryptocurrency and bull market for another 10-20 years
- How Millennials Can Fuel the Next Race
- Kathy Wood supports her colleague’s theory
The cryptocurrency and stock market may remain bullish for an extended period of time with $2 trillion annually in risky assets made by millennials, according to Fundstrat. Tom Lee. Drawing on previous research, Lee pointed to several factors that explain why and how high-risk assets can benefit from an intergenerational wealth shift.
How Millennials Can Fuel the Next Race
According to a Fundstart report, an estimated $2 trillion fortune is passed on to millennials annually through inheritance. Unlike Boomers, Millennials prefer to invest in riskier assets like stocks and cryptocurrencies in order to earn more profits in a short period of time.
As Baby Boomers will form a smaller pool of wealth over time, the direction of investment will shift in the market in favor of higher-risk assets such as cryptocurrencies, which will become fuel for the cryptocurrency and stocks market. Lee stated that in the long run, traders should monitor the stock market with a structural shift in investor behavior.
Kathy Wood supports her colleague’s theory
Lee’s theory was also supported by Cathy Wood of Ark Invest, who relied on his research for her argument. She said that she believes in both the cryptocurrency and the stock markets as investments coming from millennials will support her in the future. According to Wood, millennials understand and support the rapidly changing world of technologies, unlike Baby Boomers, who are more comfortable with more conservative investment options like bonds and commodities.
In June, Lee wrote that a “2038 bull market” is possible if his theory is confirmed and the intergenerational wealth transition goes according to plan.
In the period 2020-2021, the cryptocurrency market experienced an unprecedented growth of 1500%, with more support from institutional investors. Previously, several large banks in both Europe and the US stated that their clients are looking to invest in digital assets.