A woman once dubbed the “Oracle of Wall Street” said Tuesday that the younger Millennial and Gen Z generations are going to be hurt by one thing.
Meredith Whitney earned her nickname as the “Oracle of Wall Street” after she correctly predicted the 2008 financial crisis, according to Yahoo Finance. Now, she’s apparently concerned younger Millennials and the Gen Z popular, whom she calls the “avocado toast generation,” are going to be seriously hurt because most of them aren’t homeowners.
“Those under 38 years old, I call them the avocado toast generation, so that’s Gen Z. And the lower cohort of the millennials. They have jobs. They’re employed, so they have money. They have income, but they don’t have wealth. They don’t own homes,” Whitney told an audience at the Yahoo Finance Invest conference. (RELATED: ‘Something Has To Break’: Mortgage Rates Skyrocket As Rentals Stagnate)
But Whitney’s comments come with a few catches. Firstly, how much is she taking into account those who bought in the last two years and are predominantly paying off their interest rates instead of equity? And what about all those with jobs who may not be around as the world continues to undergo mass social and employment shifts, who may not be able to afford their mortgages if they get laid off?
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Whitney seems to be saying homeowners are lucky because they’ll be able to take on more hypothetical debt because they technically own a home. What kind of stupid financial advice is that? (RELATED: Key ‘Macro’ Indicator Of Global Economic Decline Comes Out Of … McDonald’s)
Younger Millennials and Gen Z don’t have the burden of buying overpriced homes at extreme mortgage rates. And many of our parents have paid off their properties in full. While Whitney might think we’re in a bad situation, I would argue these individuals are in the best positions possible for whatever the heck is going to be thrown our way next.