4 charts show why Wall Street’s most bullish strategist expects the stock market to triple by 2030

Cindy Ord/Getty Images for Yahoo; iStock; Rebecca Zisser/BI

Fundstrat’s Tom Lee expects the S&P 500 to top 15,000 by 2030.

Demographic trends, millennial spending habits, and technology advancements will be key drivers.

Here are the four charts that show why Lee is so bullish on the stock market.

Fundstrat’s Tom Lee raised eyebrows last month when he made an extremely bullish prediction: the S&P 500 will nearly triple by 2030.

In an interview with Bloomberg’s Odd Lots, Lee said he expects the S&P 500 to top 15,000 by the end of the decade. The index closed last week around 5,555.

“If this is a normal S&P cycle following demographics…S&P should be potentially 15,000 by the end of the decade. To me, as you move into a longer timeframe that’s probably where I think we’re moving towards,” Lee said.

In the interview, Lee said he was looking at a handful of charts that back up his bullish long-term prediction.

Here are the four charts Lee shared with Business Insider that show why the already upbeat forecaster is so bullish on the stock market.

1. Thank you, millennials

Fundstrat

Lee put the chart above together several years ago, but his thesis remains the same. The average age of millennials is now around 31 years old, and the global cohort of 2.5 billion people is starting to enter its prime age years of 30-50 years old.

“This would be the third time that stocks entered a cycle where annual returns compound at high teens. You had the roaring 20’s, and then you had the 50’s through the late 60’s, and this is a third cycle,” Lee told CNBC last month.

“They all coincided with a surge in the number of people aged 30-50, so in other words the number of prime age adults, and this time it’s powered by millennials and Gen Z.”

“It’s a demand story. When you get to your prime years, 30-50, Urban Institute shows you start to borrow more money, you’re making big life decisions, this is what powers the economy.”