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This demographic trend will be bullish for stocks for years

This demographic trend will be bullish for stocks for years

Screen Shot 2015 05 19 at 9.05.08 AM

via Tobias Levkovich, Citi

The number of Baby Boomers' children will be greater than the number of boomers themselves, which Citi's Tobias Levkovich sees as a bullish trend for stocks.

His basic argument is that as these Baby Boomers' kids enter the 35-39 age range - aka the age when people have bought their first home, have a few kids - they'll start saving aggressively in the stock market.

"The Baby Boom generation powered the 1980s and the 1990s bull market run - Generations X and Y could drive the current decades upside opportunity," according to Levkovich.

In his 17-page note to clients, Levkovich made a comprehensive, multi-faceted case for why demographic trends were favorable for stocks.

"Some estimates suggest that more than $40 trillion of wealth will be transferred by 2060 from aging Americans to their offspring and grandchildren, with the potential for continued consumption at a more impressive pace than is generally expected," he added. "Despite the two major equity bear markets of the past 15 years, equities still offer investors better upside potential than bonds and it seems improbable that shareholders will be sellers as indices achieve new highs, if history is any guide."

Levkovich has been vocal about this bullish demographic trend for almost five years.

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