Will Millennials Change the World?

Yes, and It Will Be Profitable

Written by Nick Hodge
Posted November 6, 2013

In my hometown of Baltimore, the zoning plan hasn't been updated since 1971.

I see the results of that every day on my eight-mile commute, which routinely takes over 45 minutes. Sitting at one light through multiple changes is the norm. Baltimore Abandoned Homes

Honestly, traversing the city is a clusterfuck.

And to make it more enjoyable, you get to stare at hundreds of the city's 46,000 abandoned homes at every clogged intersection.

These, of course, are symptoms of the Crisis currently facing the nation...

As I've been telling you, this Crisis period began in the mid- to late-2000s, as the housing and financial markets imploded (because of the same thought and lawmaking processes that have left Baltimore's zoning plan unchanged since 1971: preserving the status quo.)

In total, this Crisis will last around two decades — during which a new generation will rise to power, completely changing the face of America as you've known it for the past 40 or 50 years, and ushering in new social and economic Highs.

Turning

Baltimore's zoning plan is about to get an update.

The plan is called "Rewrite Baltimore." It posts this on the Background section of its website:

The Department of Planning is pleased to release a draft of a new zoning code for Baltimore. The Baltimore City Zoning Code was last comprehensively updated in 1971. At that time, the focus was on auto-oriented development, separation of uses, and preserving the City's heavy manufacturing base. Over the past 40 years, the economic realities and design goals of the City have evolved, and the current Code is no longer able to move Baltimore forward. Our goal is to preserve and enhance the long-term economic health of the City of Baltimore well into the 21st century.

Look at the part I bolded: the current Code is no longer able to move Baltimore forward.

Now apply that to banking or spying or taxes or entitlements, and switch out "Baltimore" for your city — or, indeed, the entire country.

During this crisis, the status quo is being challenged.

Over the next decade, the status quo will be torn down and rebuilt for the better... bringing with it renewed optimism and economic opportunity.

Who's driving this change?

 

Here's a snippet about Rewrite Baltimore from they city's WYPR news station:

The mayor says the process, which began in 2008, is being driven by people as opposed to planners. "When you hear that a lot of the Millennials aren't even getting their driver's license because they want to rely on public transportation, they want to rely on bikes; they want to rely on being able to live in a walk-able community," she says.

I couldn't paint a better picture of the Fourth Turning in motion.

Beyond Baltimore

Pay attention, and the signs are everywhere.

You'd be wise to start making the proper investments to benefit from this massive change in the country's direction.

Consider the news that Millennials are increasingly snubbing Wall Street after they graduate from the country's top universities.

CNBC reported last week that:

This year just 27% of newly minted Harvard MBAs took jobs in financial services, according to preliminary data from the school.

While finance remains the biggest destination for elite MBAs, it's a much smaller share than at any time in recent history. Even in the years immediately after the financial crisis, the sector's share of Harvard MBAs never fell below 31%.

So where are the graduates turning for jobs?

Increasingly, it's technology and telecommunications. From 2006 through 2009, this sector drew 7% of HBS grads. Tech's share then began rising, albeit slowly: to 8% in 2010, 11% in 2011, 12% in 2012. Then, last year, it jumped all the way to 18%.

In other words, Wall Street appears to be losing its grip on the nation's best and brightest business students. More and more, tech is where it's at.

These kids are coming of age, they're fed up with the status quo, and they're working day in and day out to change it — whether here, as you see in the world of finance, or in the revealing of unconstitutional murder and spying by young soldiers.

And the Establishment elders aren't happy about it...

John McCain has tried to dismiss them as "libertarian kids in their dorm rooms."

Nobel prize-winning economist Robert Shiller would also like to preserve the status quo. Learning that today's brightest are shying away from the world of finance, Shiller got into a spat at last week's Buttonwood Gathering put on by the Economist.

During a debate titled, "Goldman vs. Google: A Career on Wall Street or in Silicon Valley," Shiller said:

When you study finance, you are studying how to make things happen, on a big scale, on a lasting scale. That has to matter more than getting into Google and programming some little gimmick. Every human activity that matters has to be financed. You cannot do good things for the world all by yourself.

His debate opponent, Vivek Wadhwa, VP of innovation and research at Singularity University, disagreed:

Would you rather have your children going and cooking up the financial system, engineering the financial system, and creating more bubbles for us? More bubbles like the ones my esteemed friend is famous for? Or would you rather have them saving the world?

In typical Establishment fashion, Shiller quipped that his "assumption is that I'm talking to students who want to make a lot of money."

Ummmmm...

Google Stock Chart

There are many more charts like that to come.

I hope you're ready for the Fourth Turning.   

Call it like you see it,

Nick Hodge Signature

Nick Hodge

follow basic@nickchodge on Twitter

Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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