The Crypto and equity market might remain bullish for a long period of time with $2 trillion of yearly investments into high-risk assets made by Millennials, according to Fundstrat's Tom Lee. Relying on previous research, Lee pointed out numerous factors that explain why and how high-risk assets might benefit from a generational wealth shift.
How millennials might fuel the next bullrun
According to the report by Fundstart, an estimated $2 trillion of wealth is moving from Baby Boomers to Millenials per year through inheritance. Unlike "boomers," millennials prefer to invest in more risky assets like stocks and crypto in order to earn more profits in a short period of time.
Since Baby Boomers will account for a smaller pool of wealth as time passes, the investment direction will shift on the market in favor of high-risk assets like cryptocurrencies, which will become fuel for the crypto and equities market. Lee stated that, in the long term, traders should keep an eye on the stock market with the structural shift in investors' behavior.
Cathie Wood supports her colleague's theory
Lee's theory was also supported by Ark Invest's Cathie Wood, who relied on his research for her argument. She said that she believes in both crypto and the equity markets since those will be fueled by investments coming from millennials in the future. According to Wood, Millenials understand and support the rapidly changing world of technologies, unlike Baby Boomers, which feel more comfortable with more conservative investment options like bonds and commodities.
In June, Lee wrote that "bull market until 2038" is possible if his theory is confirmed and the generational wealth shift goes according to plan.
In the period 2020-2021, the cryptocurrency market has faced unprecedented 1,500% growth, with more support coming from institutional investors. Previously, numerous large banks in both Europe and the U.S. stated that their clients are looking forward to investing in digital assets.