There was an eye-popping stat a while back that highlighted the immense size of the baby boomer generation: 10,000 baby boomers would be retiring every single day for years to come.
Well, there's a new stat that just blew my mind, and it's flipped upside down: 12,000 Americans are turning 35 years old every single day.
The stat highlights the fact that the largest population in America today broken down by age is around 33 years old.
That's important because this is right around the "prime age range" of about 30 to 50 years old from an economic standpoint.
It's the sweet spot.
People in this age range tend to get married, start families, buy homes, get promoted at work, and see their income grow. And all of those things are economic multipliers.
For example, when you buy a home, you typically spend money on furnishings, appliances, home services, and improvement projects. All things that are stimulative to the economy.
This favorable demographic profile of the United States is why I think the economy, and therefore the stock market, should see sustainable growth for years to come.
The potential productivity gains of artificial intelligence and GLP-1 weight loss drugs and further interest rate cuts from the Federal Reserve are just the cherries on top.
That's not to say it will be smooth sailing from here on out.
The stock market will have its fits and starts as economic cycles give way, and the risks of an external shock like an escalated war in the Middle East or China invading Taiwan or political dysfunction in Washington D.C. remains constant.
Just two months ago, a carry trade unwind in Japan sparked a swift 5% sell-off in the US stock market in less than a week.
But if you can accept these never-ending risks and do your best to ignore them, then over time, you can significantly compound your wealth by staying invested in a balanced portfolio of high-quality stocks (and bonds depending on your age, goals, and risk tolerance).
I'm here to help you with that! Please respond to this e-mail with any thoughts or questions you might have.
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