Here's my opinion. I think more and more of the jobs that can provide for families will be concentrated in the Innovation sector, which simply means in STEM jobs. Other jobs won't have the growth or earnings capacity, with the exception of blue collar jobs like plumbing or electrician jobs, especially if you start a small business in those areas. But I think the major Innovation center cities like San Fran/Silicon Valley, Seattle, Austin, Boston, LA, will continue to provide the bulk of the good jobs in the US and students and Gen Z will flock to those cities. Millennials are there now, but they may actually eventually start to move out to the suburbs and exurbs to find cheaper housing, AFTER they have found steady employment in the Innovation sector. They will bring their money with them and go to cities that may have been forgotten and they will be able to work from home or split time between the office and home. They will start to buy homes, furniture, cars, and all the staple goods of family life in these suburbs and exurbs, which could generate good growth there. In addition, they will inherit over the next 20 years, over $40 trillion from the Baby Boomers as they die off. That money will be invested in stocks, as well as be spent on real estate.
So I think we're going to have a good few decades ahead as the Boomers die off and the Millennials come into their own and take more risks and spend more of the money the Boomers have been hoarding. So I think the Innovation cities like Boston will be great long term bets, but I think if you can figure out where the Millennials will move to, when they get sick of the high prices of living in places like Boston, then you can invest there and make good gains there too.
In the short term, I think there just has to be a correction. This is all just too frothy. But I could be wrong, of course. |
