Fundstrat’s Tom Lee is making a bold prediction for the stock market, suggesting that it could nearly triple by 2030 to reach 15,000. In a recent interview, Lee pointed to two thematic drivers behind his bullish projection: millennials and a global labor shortage.
Lee explained that millennials, as the largest generation, are reshaping the economy through fintech and changes in preferences. Additionally, a significant generational wealth transfer is on the horizon, potentially injecting as much as $80 trillion into the market.
The second driver, according to Lee, is a global labor shortage that began in 2015 and is not expected to be resolved until 2035. He noted that previous instances of a global labor shortage led to a parabolic increase in technology stocks, hinting at a potential boom in that sector.
The projection of a global labor shortage is based on demographics, with prime-age workers not being replaced at a fast enough rate. This could lead companies to invest heavily in technology and automation to fill the gap, spending trillions on silicon-based technologies like robotics and artificial intelligence.
Lee’s optimistic outlook is also supported by continued growth in earnings and valuation multiples in the stock market. He believes that businesses have shown resilience, especially in the face of challenges like the COVID-19 pandemic, warranting a higher valuation.
With a track record of accurate predictions, including a recent call for the S&P 500 to reach 5,500 by the end of June (which is currently trading just below that level), investors may want to take note of Lee’s long-term forecast for the stock market.
