Millennials come in for a certain amount of scorn—particularly by older Baby Boomers—in the popular imagination but investors should say “Thank Goodness!” for that age cohort.
We need to thank them for the impressive resilience of the American economy, as evidenced by the recent November jobs report.
That report, released Dec. 6, showed employers added 266,000 jobs in November and unemployment matched a 50-year low of 3.5%, topping expectations. The news spurred markets higher on that Friday after a poor week.
This bounce up is supported by more than a "performance year end chase" since one could have argued stocks had already seen their high for the year.
Let me make a few points about Millennials, which grabbed the attention of the media last week.
1) The large size of the Millennial cohort is causing an acceleration of U.S. GDP multiplier/growth. More importantly, I believe the investor framework about the US economy is changing. The US seems to be largely avoiding the sluggishness seen in Asia and Europe, stumping many economists who expected the U.S. to sink with the rest of the world.