Bulletin
Investor Alert

London Markets Open in:

Key Words Archives | Email alerts

Oct. 26, 2019, 10:25 a.m. EDT

No recession? Thanks, millennials!

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    S&P 500 Index (SPX)
  • X
    Dow Jones Industrial Average (DJIA)
  • X
    Apple Inc. (AAPL)

or Cancel Already have a watchlist? Log In

By Shawn Langlois, MarketWatch


iStockphoto
Millennials are the key to the stock market's future.

‘They are turning 30. They’ve had 10 years to be in the workforce. They’ve had 10 years to build a credit score. They’ve had 10 years to meet a significant other and get prepared to build a household. We’re seeing this behavior show up in this millennial demographic which should help buffer the economy from a more significant slowdown.’

That’s Tony Dwyer, Canaccord Genuity’s chief market strategist, explaining to CNBC this week why he believes millennials are a critical component of his bullish stance on where the stock market goes from here.

“It’s a really big deal,” he explained. “The peak birth year in the millennials [1990] is almost as big as the peak birth year of the baby boom generation.”

Dwyer is looking for the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.07% to hit 3,350 by the end of next year. At last check, the broad market gauge was up slightly at 3,013 in Tuesday’s session. The Dow /zigman2/quotes/210598065/realtime DJIA +0.33% was also gaining ground.

He is particularly fond of consumer-discretionary stocks, which he believes will benefit from the spending trends of the younger generation.

“If a household is fully employed, they have income and they can go to the bank and get a home-equity line of credit or credit-card debt or whatever a bank is willing to lend them, you have some pretty consistent spending behavior as we’ve seen over the past 10 years,” Dwyer told CNBC.

Watch the full interview:

Dwyer’s views echo those of Smead Capital Management Chief Executive Bill Smead, who explained last week how “incredibly economically impactful things” are about to happen as millennials begin to prioritize necessity spending. Big ticket items, Smead says, will soon be prioritized over “Apple /zigman2/quotes/202934861/composite AAPL +0.96% devices, craft beer and Chipotle /zigman2/quotes/200781108/composite CMG -0.52% burritos.”

/zigman2/quotes/210599714/realtime
US : S&P US
3,094.04
+2.20 +0.07%
Volume: 1.72B
Nov. 13, 2019 4:56p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,783.59
+92.10 +0.33%
Volume: 278.39M
Nov. 13, 2019 4:56p
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 264.47
+2.51 +0.96%
Volume: 25.82M
Nov. 13, 2019 4:15p
P/E Ratio
22.31
Dividend Yield
1.16%
Market Cap
$1165.03 billion
Rev. per Employee
$1.98M
loading...
/zigman2/quotes/200781108/composite
US : U.S.: NYSE
$ 753.30
-3.97 -0.52%
Volume: 464,671
Nov. 13, 2019 6:30p
P/E Ratio
68.65
Dividend Yield
N/A
Market Cap
$20.66 billion
Rev. per Employee
$66,644
loading...

Shawn Langlois is an editor and writer for MarketWatch in Los Angeles. Follow him on Twitter @slangwise.

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.