There's a video on Youtube titled 'What does 'wealthy' even mean in 2025?' which is a CNN channel. Here, CNN's Michael Smerconish speaks with Jean Chatzky. Mrs. Chatzky claims (time stamp 5:56 of the video) that a wealth transfer of $124T will happen from Boomers to their kids or whatever. Another thing she says is that this will increase the wealth concentration as in the rich will become even richer, and there will be fewer of those.
It immediately hit me. Where will they plough that money into? A good chunk h_as to end up in S&P500 right?
In other words, in the next decade, as and when these boomers pass on, S&P500 (and hence, the mag-7) should skyrocket in price right? Added to that, if these guys manage to pull it off in the AI race, these stocks are bound to skyrocket in price and could be at an inflated level (meaning high pe etc) for a while right? These two forces (AI boom, and wealth transfer of 124 freakin trillion dollars) should propel the markets a lot I'd think.
It's basically an economic stimulus right? But this time, the fed is not printing the money.
Your thoughts?