Quantitative & Strategy Cam Hui, CFA
[email protected] THE “OK BOOMER” DECADE December 30, 2019 Table of Contents EXECUTIVE SUMMARY ‘Tis the season for strategists to publish their year-end forecasts for 2020. Instead of Is Demographics Really Destiny? ............. 2 participating in that ritual, this is the second of a series of think pieces of what might lie ahead for the new decade (for the first see China: Paper Tiger). A Focus on Inequality ............................... 3 It is said that demographics is destiny. As the Baby Boomers age and fade into their golden A Tilted Playing Field? ............................. 5 years, the Millennial generation is entering its prime and is poised to seize the baton of consumer spending and, eventually, political leadership. Future Policy Implications ........................ 7 We believe the coming decade is likely be the “OK Boomer” decade that sees a passing of the baton to the Millennial cohort characterized by: A Leftward Political Shift .......................... 9 A greater focus on the effects of inequality Expect Rising Inflationary Expectations .. 12 A political shift to the left The Dawn of ESG Investing ................... 13 There are two policy effects that can be easily identified: o The rise of MMT as a policy tool o The rise of ESG investing The question of whether these developments are good or bad is beyond our pay grade. However, investors should be prepared for these changes in the years to come. Confidential — Do not duplicate or distribute without written permission from Pennock Idea Hub Cam Hui, CFA |
[email protected] Page 1 December 30, 2019 Quantitative & Strategy Is Demographics Really Destiny? ‘Tis the season for strategists to publish their year-end forecasts for 2020.