Inflation Concerns Spark Changing Investment Preferences Among Younger Generations

A generational paradigm shift occurs in markets, led by younger generations. For most of the 20th century, stocks and bond yields moved in opposite directions. Still, they have recently started moving in the same direction again after a period of divergence, which is attributed to inflation concerns. Younger generations prioritize stocks over bonds and view inflation differently than older cohorts. This generational dynamic is impacting overall market behavior.