The Biggest Boom To Hit The Dow

Now, the reason that I’m so confident that I can tell you that the Dow is going up to 50,000 and beyond is because of two things.

First, the millennial generation is massive, numbering 92 million. That’s the biggest generation in American history — even bigger than the baby-boomer generation.

And remember, the baby-boomer generation started hitting the age of 34 in 1982, which marked the beginning of the last major bull market that generated gains of 1,000%.

Second, the millennial generation is global. By that I mean there are more than 2 billion people around the world who are between the ages of 18 and 34 today. And because so many of them have grown up with the Internet and smartphones, many of their tastes and preferences are the same … regardless of whether they live in Dubai or London or Mumbai or New York.

That means many millennials around the world listen to electronic dance music, flock to music festivals, love video games, buy IKEA furniture and want cars that they can take on outdoor trips. Millennials are infamous for always being on their smartphones, texting and communicating in real time everything that they are doing.

Changing the Market

Now, you should understand that millennials are already making their presence felt in our economy. A recent survey by Zillow, an online real estate company, shows that millennials account for 47% of home purchases today.

In addition, millennials represent 28% of all car buyers and account for over $1.3 trillion in spending.

And millennials’ preferences and habits are generating incredible gains in the stock markets. For example, millennials’ daily use of Facebook has caused its stock to soar by 133% over the last three years. That’s nearly five times the gain for the S&P 500 over the same time period.

However, to make a general bet on the U.S. stock market surging higher due to economic growth coming from millennials, you can buy the Dow Jones Industrial Average ETF (NYSE Arca: DIA). This exchange-traded fund (ETF) is going to give you exposure to the broad market. I recommended this ETF on February 12, and it’s up roughly 23% since then.

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Paul Mampilly joined The Sovereign Society in 2016, and serves as Senior Editor specializing in helping Main Street Americans find wealth in growth investing, technology, small-cap stocks and special ...

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