The word “megatrend” should never be ignored by investors. After all, this is where tactical investors can ride a long-term wave in hopes of profits. Secular trends can last 10 years, or 20 years, or even longer. If you have somehow ignored demographic and statistical trends around women, it may be time to pay attention.
BofA Securities has released a 21-page research report titled “Women & Wealth: Growing the Pie, Changing the World.” The report is under Global Sustainability, and it is more of a global theme rather than only targeting U.S. and North American trends. The report is also not targeted directly at investors, but the theme should be easy enough to interpret —
Women’s wealth is rising, industries need to take note…
BofA hits on many topics. Some data is even calculated out to the year 2048. If 23 years into the future doesn’t sound like a secular trend, then what is? Again, this is a theme where tactical investors can absolutely try to hitch a ride for those long-term returns.
Tactical Bulls does not rehash entire research reports, but here are some key themes that should be considered:
- $124 trillion in wealth will be inherited or gifted by 2048 – and women will receive most of it (with $30 trillion expected to go to U.S. women over the next decade).
- Women now outnumber men at university.
- Women have strong career aspirations and expect higher pay.
- Women are working more, they are spending more, and they are growing the global economic pie.
- Women are also delaying marriage and having fewer children.
According to BofA, industries need to pay attention and act now if they want to capture women’s rising influence. The report even identified professional sports, health care, travel, and luxury in part of the broader report. It also addresses closing the employment gap and wage gap between men and women being potentially worth over $1.7 trillion in compensation across the U.S. and E.U. alone.
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According to BofA on the 50+ theme:
Ignoring ‘women of a certain age’ now means handing your competition the female demographic with the highest earnings, net worth – and population growth. Only 5-10% of marketing budgets target consumers over 50, yet this is over 45% of people in the US, EU and UK. People 50+ contribute $45tn to global GDP. Worthy of investment?
Improving women’s health could not only improve their quality of life, it could increase labor force participation and grow the pie to boost the global economy. And for travel trends, BofA shows that 64% of leisure travelers are female, who prioritize travel and set trends for solo tours; and they are buying their own luxury goods, including fine jewelry.
The report also addresses how the transfer of wealth will not be equal, with wealthier nations and wealthier families holding more of this wealth over time. While this is not the full report, BofA’s Insights does expand on more of these issues individually.
For disclosure purposes, this summary was written by a guy who has a wife and a daughter (and a son).
Categories: Economy, Investing, Personal Finance, Retirement