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Move Over Baby Boomers, Generation Y Will Usher in the Next Investing Boom: Hays


There comes a point in life when all of us must face a certain reality that we're not getting any younger. In some cases, this time to grow up realization results in the desire to have nicer clothes and a bigger place to live, maybe to find a spouse or have a kid or two, or to find a better job. It's the quintessential moment of settling down that haunts both those who have gone through it, as well as those who are about to. It's the epiphany that come with turning 35, but it's also the backdrop for the next mega-trend in stocks.

"The Generation-Y or Millenial generation is 19 to -35 years old and makes up 27% of the U.S. population," says Don Hays, founder and chairman of Hays Advisory Group, in the attached video. "And right now, they're entering the most productive part of their life cycle."

As he sees it, the typical millenial hasn't had a "really good job in the last 15 years," which is one big reason why he feels things are about to change for this tech-savvy, underemployed, racially diverse group.

"You're going to see that they are going to be much better at producing productivity," Hays predicts, then points to a better-known predecessor group as an example.

"We all remember Woodstock in 1969," he states. "Well, by 1980 the baby boomers had just entered the most productive part of their life cycle," a demographic tidal wave that shocked and changed the face of the nation. While the 20-year growth spurt from 1980 - 2000 is not entirely attributable to the Baby Boomers, Hays says it is worth paying attention to these types of cycles.

"So we're very bullish about what's going to happen in the next 20 years in the U.S. economy," he says, noting that "all of that together is going to be good for America."

But much as this Tennessean is an eternal optimist, he is also a pragmatist and readily admits that "most investors - including ourselves - are more interested in the next 12-18 months" than the next 20 years. By keeping his mind on the big picture and his eye focused on short-term changes in investor psychology, monetary policy, and valuations, Hays strives to take advantage of moments of weakness as they periodically arise.