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- MEET THE 'ECHO BOOM': The 80 Million People Who Will Save The American Economy
MEET THE 'ECHO BOOM': The 80 Million People Who Will Save The American Economy
This generation is also known as "Generation Y" or "Millennials" (because they came of age in the new millennium).
![MEET THE 'ECHO BOOM': The 80 Million People Who Will Save The American Economy](/_next/image?url=https%3A%2F%2Fstaticbiassets.in%2Fthumb%2Fmsid-21382377%2Cwidth-700%2Cheight-525%2Cimgsize-81721%2Fthis-generation-is-also-known-as-generation-y-or-millennials-because-they-came-of-age-in-the-new-millennium-.jpg&w=3840&q=75)
They're generally defined as having been born between 1980 and 1995, making the oldest Echo Boomers just 33. If you conceived to Duran Duran, you gave birth to a Millennial.
![They](https://staticbiassets.in/thumb/msid-21382378,width-700,height-525,imgsize-170297/theyre-generally-defined-as-having-been-born-between-1980-and-1995-making-the-oldest-echo-boomers-just-33-if-you-conceived-to-duran-duran-you-gave-birth-to-a-millennial-.jpg)
And eventually they will be the largest cohort in the country.
![And eventually they will be the largest cohort in the country.](https://staticbiassets.in/thumb/msid-21382381,width-700,height-525,imgsize-108622/and-eventually-they-will-be-the-largest-cohort-in-the-country-.jpg)
They are less white and more diverse.
![They are less white and more diverse.](https://staticbiassets.in/thumb/msid-21382382,width-700,height-525,imgsize-128706/they-are-less-white-and-more-diverse-.jpg)
Their values are mostly similar, although they may be less materialistic than other generations.
![Their values are mostly similar, although they may be less materialistic than other generations.](https://staticbiassets.in/thumb/msid-21382383,width-700,height-525,imgsize-97479/their-values-are-mostly-similar-although-they-may-be-less-materialistic-than-other-generations-.jpg)
They will be better educated.
![They will be better educated.](https://staticbiassets.in/thumb/msid-21382385,width-700,height-525,imgsize-178339/they-will-be-better-educated-.jpg)
And they are more optimistic. And for good reason...
![And they are more optimistic. And for good reason...](https://staticbiassets.in/thumb/msid-21382388,width-700,height-525,imgsize-123051/and-they-are-more-optimistic-and-for-good-reason-.jpg)
At some point, housing formation will return to the mean.
![At some point, housing formation will return to the mean.](https://staticbiassets.in/thumb/msid-21382389,width-700,height-525,imgsize-80939/at-some-point-housing-formation-will-return-to-the-mean-.jpg)
It's already getting there.
![It](https://staticbiassets.in/thumb/msid-21382390,width-700,height-525,imgsize-101772/its-already-getting-there-.jpg)
JMPG estimates nearly 3 million in pent-up demand. And look at the growth rate in couples! (Data not available for same-sex couples).
![JMPG estimates nearly 3 million in pent-up demand. And look at the growth rate in couples! (Data not available for same-sex couples).](https://staticbiassets.in/thumb/msid-21382392,width-700,height-525,imgsize-125839/jmpg-estimates-nearly-3-million-in-pent-up-demand-and-look-at-the-growth-rate-in-couples-data-not-available-for-same-sex-couples-.jpg)
They've already caused a boom in rentals. This will eventually spill into homebuying.
![They](https://staticbiassets.in/thumb/msid-21382393,width-700,height-525,imgsize-81769/theyve-already-caused-a-boom-in-rentals-this-will-eventually-spill-into-homebuying-.jpg)
And again, the oldest millennials are in their early 30s — nowhere near peak earnings years.
![And again, the oldest millennials are in their early 30s — nowhere near peak earnings years.](https://staticbiassets.in/thumb/msid-21382396,width-700,height-525,imgsize-18131/and-again-the-oldest-millennials-are-in-their-early-30s-nowhere-near-peak-earnings-years-.jpg)
And their overall assets are at least two decades away from topping out.
![And their overall assets are at least two decades away from topping out.](https://staticbiassets.in/thumb/msid-21382399,width-700,height-525,imgsize-21309/and-their-overall-assets-are-at-least-two-decades-away-from-topping-out-.jpg)
And nine out of 10 millennials say they eventually want a place they own, according to a recent Fannie Mae survey.
![And nine out of 10 millennials say they eventually want a place they own, according to a recent Fannie Mae survey.](https://staticbiassets.in/thumb/msid-21382403,width-700,height-525,imgsize-199647/and-nine-out-of-10-millennials-say-they-eventually-want-a-place-they-own-according-to-a-recent-fannie-mae-survey-.jpg)
Source: Atlantic
Now, it's true about half of Echo Boomers' wealth is in bonds, money market accounts or cash...
![Now, it](https://staticbiassets.in/thumb/msid-21382406,width-700,height-525,imgsize-218607/now-its-true-about-half-of-echo-boomers-wealth-is-in-bonds-money-market-accounts-or-cash-.jpg)
Source: Kiplinger
And only 22% of investors under age 35 -- many fewer than in 2001 -- say they’re willing to take on substantial risk.
![And only 22% of investors under age 35 -- many fewer than in 2001 -- say they’re willing to take on substantial risk.](https://staticbiassets.in/thumb/msid-21382407,width-700,height-525,imgsize-82807/and-only-22-of-investors-under-age-35-many-fewer-than-in-2001-say-theyre-willing-to-take-on-substantial-risk-.jpg)
Source: Kiplinger
But analysts like Tobias Levkovich believe that will change as the cohort enters prime earnings age — we know that the more 30 somethings, the higher the S&P goes.
![But analysts like Tobias Levkovich believe that will change as the cohort enters prime earnings age — we know that the more 30 somethings, the higher the S&P goes.](https://staticbiassets.in/thumb/msid-21382412,width-700,height-525,imgsize-69710/but-analysts-like-tobias-levkovich-believe-that-will-change-as-the-cohort-enters-prime-earnings-age-we-know-that-the-more-30-somethings-the-higher-the-sp-goes-.jpg)
Source: Byron Levkovich/Citi
And equity values turn out to be closely related to the age distribution of the population, so you can plot the path that the P/E ratio is likely to follow in the next few decades based on demographics.
![And equity values turn out to be closely related to the age distribution of the population, so you can plot the path that the P/E ratio is likely to follow in the next few decades based on demographics.](https://staticbiassets.in/thumb/msid-21382414,width-700,height-525,imgsize-78444/e-ratio-is-likely-to-follow-in-the-next-few-decades-based-on-demographics-.jpg)
Source: Calculated Risk
Most brands doing well now will continue to do well in the future.
![Most brands doing well now will continue to do well in the future.](https://staticbiassets.in/thumb/msid-21382415,width-700,height-525,imgsize-249845/most-brands-doing-well-now-will-continue-to-do-well-in-the-future-.jpg)
And they will never stop buying tech.
![And they will never stop buying tech.](https://staticbiassets.in/thumb/msid-21382417,width-700,height-525,imgsize-102704/and-they-will-never-stop-buying-tech-.jpg)
Their greater tolerance for caring for their elders will help lower medical costs.
![Their greater tolerance for caring for their elders will help lower medical costs.](https://staticbiassets.in/thumb/msid-21382418,width-700,height-525,imgsize-116639/their-greater-tolerance-for-caring-for-their-elders-will-help-lower-medical-costs-.jpg)
Finally and most importantly, they are waiting longer to get married. Presumably that means more economically efficient marriages and fewer inefficient (ie divorce-fated) ones.
![Finally and most importantly, they are waiting longer to get married. Presumably that means more economically efficient marriages and fewer inefficient (ie divorce-fated) ones.](https://staticbiassets.in/thumb/msid-21382419,width-700,height-525,imgsize-84730/finally-and-most-importantly-they-are-waiting-longer-to-get-married-presumably-that-means-more-economically-efficient-marriages-and-fewer-inefficient-ie-divorce-fated-ones-.jpg)
In sum: this better-educated, more financially savvy generation will yield a higher stock market, higher earnings, stronger economy.
![In sum: this better-educated, more financially savvy generation will yield a higher stock market, higher earnings, stronger economy.](https://staticbiassets.in/thumb/msid-21382421,width-700,height-525,imgsize-203257/in-sum-this-better-educated-more-financially-savvy-generation-will-yield-a-higher-stock-market-higher-earnings-stronger-economy-.jpg)
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