It's Hard To Be Bearish On The Stock Market As Risk-happy Millennials Inherit $2 Trillion Per Year, Fundstrat's Tom Lee Says

Cindy Ord/Getty Images Trillions of dollars flowing to risk-tolerant Millennials are set to boost stock market fundamentals for years, says Fundstrat's Tom Lee. Lee identified four factors that show the scale of the generational wealth transfer underway. "I do believe that both crypto and the equity markets are going to be powered by millennials," ARK Invest's Cathie Wood said last week - having previously cited Lee's work as evidence for this theory. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. Trillions of dollars flowing to risk-tolerant Millennials are set to boost stock market fundamentals for years, making it hard to be too bearish, Fundstrat's Tom Lee wrote in a note on Friday.Building on past research, Lee pointed to four factors that show the scale of the generational wealth transfer underway:$2 trillion of wealth flows from Baby Boomers to Millennials per year through inheritance, according to Fundstrat estimatesOver the next 20 years, Millennials will inherit $76 trillion from previous generationsMillennials tend to prefer higher-risk assets like stocks and cryptoBaby Boomers are becoming a smaller relative share of the pool of wealth, meaning Millennial asset preferences will fuel a structural shiftLee argued that the logical conclusion of these data points is that investors ought to take a long-term bullish view on stocks."Can one be structurally bearish on stocks if this is the case?" he said.Lee has previously offered similar arguments for permanent bullishness, pointing to other structural factors like easy monetary policy and abundant cash on the sidelines."Bull market until 2038?