Peter Smith
⬤ Older Americans just hit a major wealth milestone. Households aged 70 and up now hold $19.7 trillion in U.S. equities—almost double what everyone under 55 owns combined. The gap started widening after 2021, but the AI-fueled market rally from 2023 to 2025 really kicked things into high gear, massively benefiting those who were already sitting on large portfolios.
⬤ The crossover happened back in 2014, when older households first overtook younger ones in total stock ownership. A few big factors explain why. Baby Boomers—the richest generation America's ever seen—are now hitting their 70s. Decades of market gains have compounded their wealth. They carry less debt and have more cash to invest. Plus, retirement account rollovers into equity-heavy index funds have pumped up their balances even more. The AI boom since 2023, led by big tech and chip stocks, supercharged gains for anyone already holding meaningful equity positions.
⬤ Younger households are dealing with a completely different reality. High housing costs, student loans, childcare expenses, and slower wage growth early in their careers make it tough to build investment portfolios. Meanwhile, older Americans are benefiting from inheritances, business sales, and asset liquidations that keep strengthening their positions. The post-ChatGPT AI surge lifted mega-cap tech companies the most—widening the generational wealth gap even further.
⬤ What we're seeing is a demographic shift colliding with one of the most explosive AI-driven market runs in history. As AI reshapes tech, semiconductors, and cloud infrastructure valuations, older households—who already own most of the equities—are capturing the lion's share of gains, pushing their total close to the $20 trillion mark.
Peter Smith
