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  • Matthew Lawson

When the demographics are in your favor get long and stay long.

As we are heading into February, January will finish positive for the S&P 500, this bodes well for the rest of the year. While the stock market never moves in a straight line; dips and corrections should be bought. We remain positive on semiconductors due to the Artificial Intelligence buildout and small-cap stocks. The Federal Reserve has already changed its stance from restrictive to accommodative. Act accordingly.

In 1980 the average baby boomer was 35 years old and entering a period of spending/consumption. This lasted through to the age of 55 or 2000 and happened to coincide with one of the longest bull markets in the past 150 years. Today, a larger generation, with more disposable income is in play. The average millennial turned 35 years old in 2016. If the past is any guide, then perhaps another 20 years is in store, taking us to 2036.

1980 to 2000 was not the goldilocks period many investors want to remember. During that time, the markets experienced crashes, corrections, currency devaluations, and a bond default by a sovereign government. The average investor grossly underperformed the market averages due to fear and pessimism.

Today is not any different from years past. The market presents a tremendous opportunity for investors.

 

Best,

Matt


Lawson Winchester Wealth Management


The views expressed are not necessarily the opinion of Cadaret Grant, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Investing is subject to risks including loss of principal invested. Past performance is not a guarantee of future results. No strategy can assure a profit nor protect against loss. Please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.

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