At Financial Sense, we don’t pick guests for our podcast based on whether they are bullish or bearish on the market. Really, our goal is to have well-respected and sometimes unique individuals to explain why they are bullish or bearish to better understand their reasoning and assumptions.
So, with that said, we welcome your feedback on Dan Wantrobski’s comments from our Saturday broadcast that the US economy is going to see explosive growth in the future based on the very large Millennial generation, which, as he points out, is slowly working its way toward that key “household formation stage.”
Here’s what he had to say:
“What remains a key driver of future economic growth is the Millennials approaching family formation in massive numbers. In fact, within the next 10-15 years new household formation stands to reach all-time highs once again. I think that's a tremendous driver for potential economic stimulus and money velocity in this country.
This group of young people born between the years of 1980 and 2000, numbering anywhere from 85 to 90 million, have never really participated in the economy before. They haven't been big consumers yet. They certainly haven't been producers. They haven't been investors and they certainly haven't been savers. So this is a new pool of potential activity that is really about to be integrated into this economy.
I think it's going to be disruptive. I think it's going to allow for a lot more economic growth than people realize…as a new demographic boom is about to come online and really generate a lot of economic velocity and activity. To me, that's very, very bullish... and we think the market move could actually be pretty explosive going forward...”
Wantrobski also discusses with Financial Sense host Jim Puplava interest rates, market cycles, commodities, the price multiple on the S&P 500 and a whole range of other topics that he believes supports a bullish view on the markets and the US economy going forward, which you can listen to in full by clicking here. Also, we should note that he does think we are facing at least one more washout or down wave in stocks before it's off to the races.
From our standpoint, Wantrobski may eventually be right—it’s just a question of timing (when?) and magnitude (how strong will it be?). That being said, he makes some good points. What do you think?
For a complete archive of our podcast interviews on finance, economics, and the market, visit our Newshour page here or iTunes page here. Subscribe to our weekly premium podcast by clicking here.
