No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Thursday, October 2, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

The one-time ‘Oracle of Wall Street’ who called the 2008 crash sounds the alarm for Gen Z and Millennials in the year ahead

by TheAdviserMagazine
3 weeks ago
in Business
Reading Time: 3 mins read
A A
The one-time ‘Oracle of Wall Street’ who called the 2008 crash sounds the alarm for Gen Z and Millennials in the year ahead
Share on FacebookShare on TwitterShare on LInkedIn



The one-time “Oracle of Wall Street” who famously called the 2008 financial crisis is once again sounding the alarm—this time warning that Gen Z and millennials will be “very weak” in the year ahead. Meredith Whitney, the prominent financial analyst whose prescient warnings about subprime mortgages proved true nearly two decades ago, has shifted her focus to the economic vulnerabilities facing today’s younger generations in the evolving U.S. economy.

On a recent episode of “Barron’s Roundtable” aired by Fox Business, Whitney explained that while Gen Z and millennials have propped up consumer spending and have often been considered the backbone of the post-pandemic economy, their financial underpinnings are increasingly fragile. Whitney described Gen Z and millennials—she said she calls them the “avocado toast consumer”—as being uniquely exposed due to a convergence of economic factors that threaten their resilience: rising costs, stagnant wages, unaffordable housing, and a waning safety net from pandemic-era benefits.

She added that she was “not surprised” by the recent disappointing jobs growth in August, attributing it to a hidden, weaker economy underlying the surface, with the avocado toast consumer at the heart of things.

Looking closely at consumption

Whitney points to decelerating and even negative consumer spending in key categories that comprise approximately 20% of the workforce, including hotel, hospitality, and retail sectors, as a primary indicator. She also suggests that current immigration policies are further pressuring these same categories by effectively removing a million non-native-born workers from the workforce. This combination, she believes, indicates a more fragile economic environment than widely perceived, and she anticipates the unemployment rate could climb into the “high fours” by the end of this year and into the next. By this, she meant unemployment of 4% and above, even approaching the 5% range. These are low by historical standards, but elevated from the 3% range from 2022 that was the lowest since the 1970s.

Her analysis dives deep into the U.S. consumer, a segment she finds “so granular.” Whitney has segmented consumers over the past five years, identifying a stark contrast between the “high-end consumer” and what she terms the “avocado toast consumer”. The latter group, primarily college-educated, high-spending individuals between 24 and 38 who often do not own homes but possess significant discretionary income, has been a key driver of the economy. This demographic stands in contrast to over 52% of households that have been “struggling.”

However, this affluent, younger cohort is now facing significant financial headwinds, she argued, largely due to the resumption of student-loan repayments and the impending roll-off of healthcare subsidies. Whitney explained that for nearly five years, there were no penalties for not paying student loans, creating a false sense of financial freedom. While a one-year “on-ramp” period without penalties beyond incurring interest was in place, repayments officially resumed in October 2024. Although many began paying, a substantial portion did not, with 25% of student loan holders and over 50% of the total student loan debt concentrated within the 24-38 age group.

For those who have resumed payments, the impact has already been felt, leading to suppressed spending evident in the poor performance of quick-service restaurants like Panera, Cava, and Sweetgreen. Whitney warns that the situation is poised to worsen, with impending wage garnishment for seriously delinquent student-loan debt set to further squeeze this cohort. Sweetgreen, to her point, cut its outlook for the last two quarters as same-store sales have fallen into a prolonged slump, with CEO Jonathan Neman shaking up the menu to lean into protein as he tries to give customers more bang for their “sad desk salad” buck.

More subsidies expiring

Adding to this pressure is the expiration of key healthcare subsidies at the end of the year. In response to COVID-19, the American Rescue Plan Act had subsidized healthcare premiums for individuals earning up to 400% over the poverty line, effectively providing an additional $300 a month in discretionary income for many. This benefit, combined with the pause on student loan payments, amounted to a “massive amount of discretionary spend” that will now disappear.

Whitney emphasizes that the cumulative effect of wage garnishment on student debt and the cessation of healthcare subsidies will create a “completely different type of headwind” next year, particularly for Gen Z and millennials. Companies have heavily focused their marketing efforts on these younger generations, who will now experience “real pressure on consumer spend.” Consequently, Whitney predicts that “Gen Z and Millennials will be very weak over the next year”.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. 

Fortune Global Forum returns Oct. 26–27, 2025 in Riyadh. CEOs and global leaders will gather for a dynamic, invitation-only event shaping the future of business. Apply for an invitation.



Source link

Tags: AheadAlarmcalledcrashGenmillennialsOnetimeOracleSoundsStreetWallyear
ShareTweetShare
Previous Post

*HOT* Frigidaire 6.5 Cu. ft. Upright Freezer only $198 shipped (Reg. $400!)

Next Post

Traders see a chance the Fed cuts by a half point

Related Posts

edit post
PepsiCo’s new challenge: Making its chips and sodas colorful without artificial dyes

PepsiCo’s new challenge: Making its chips and sodas colorful without artificial dyes

by TheAdviserMagazine
October 2, 2025
0

Pepsi has a new challenge: keeping products like Gatorade and Cheetos vivid and colorful without the artificial dyes that U.S....

edit post
What CEOs are saying about the government shutdown

What CEOs are saying about the government shutdown

by TheAdviserMagazine
October 2, 2025
0

Good morning. I was talking to a CEO over the phone yesterday about the potential business impact of a government...

edit post
Sign of the times as Swiss buy euros, not dollars

Sign of the times as Swiss buy euros, not dollars

by TheAdviserMagazine
October 2, 2025
0

The Swiss National Bank may be a special case, but if you were looking for a switch in the behavior...

edit post
Lyft CEO on the time Bill Gates told him he was making ‘the stupidest decision I’ve ever heard anyone made’

Lyft CEO on the time Bill Gates told him he was making ‘the stupidest decision I’ve ever heard anyone made’

by TheAdviserMagazine
October 1, 2025
0

Before David Risher was tasked with scripting a “comeback story” for ride-sharing company Lyft, he made a career move so...

edit post
The rise of the bro co-CEO

The rise of the bro co-CEO

by TheAdviserMagazine
October 1, 2025
0

Yesterday, Spotify founder and CEO Daniel Ek announced that he’ll be stepping down in the new year. Two of his...

edit post
Stripe is already a payments colossus. Now it wants to make stablecoins the backbone of global commerce

Stripe is already a payments colossus. Now it wants to make stablecoins the backbone of global commerce

by TheAdviserMagazine
October 1, 2025
0

Last October, the payments giant Stripe announced a blockbuster $1.1 billion acquisition of Bridge, a little-known startup focused on the...

Next Post
edit post
Traders see a chance the Fed cuts by a half point

Traders see a chance the Fed cuts by a half point

edit post
5 tax planning challenges facing financial advisors

5 tax planning challenges facing financial advisors

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
Who Needs a Trust Instead of a Will in North Carolina?

Who Needs a Trust Instead of a Will in North Carolina?

September 1, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
6 Halloween Destinations to Treat Yourself

6 Halloween Destinations to Treat Yourself

0
edit post
Visa crackdowns are blocking students’ study-abroad dreams, so India’s Leverage Edu is rerouting them

Visa crackdowns are blocking students’ study-abroad dreams, so India’s Leverage Edu is rerouting them

0
edit post
Report: The Financial Landscape of Sub-Saharan Africa

Report: The Financial Landscape of Sub-Saharan Africa

0
edit post
PepsiCo’s new challenge: Making its chips and sodas colorful without artificial dyes

PepsiCo’s new challenge: Making its chips and sodas colorful without artificial dyes

0
edit post
Advisor guide: navigating the government shutdown

Advisor guide: navigating the government shutdown

0
edit post
What CEOs are saying about the government shutdown

What CEOs are saying about the government shutdown

0
edit post
PepsiCo’s new challenge: Making its chips and sodas colorful without artificial dyes

PepsiCo’s new challenge: Making its chips and sodas colorful without artificial dyes

October 2, 2025
edit post
What CEOs are saying about the government shutdown

What CEOs are saying about the government shutdown

October 2, 2025
edit post
Report: The Financial Landscape of Sub-Saharan Africa

Report: The Financial Landscape of Sub-Saharan Africa

October 2, 2025
edit post
Sign of the times as Swiss buy euros, not dollars

Sign of the times as Swiss buy euros, not dollars

October 2, 2025
edit post
XRP Price Prediction: CTO Exit and Investor Sell Calls Clash With Bullish .70 Target

XRP Price Prediction: CTO Exit and Investor Sell Calls Clash With Bullish $4.70 Target

October 2, 2025
edit post
Do you pay GST/HST when you build or renovate a house?

Do you pay GST/HST when you build or renovate a house?

October 2, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • PepsiCo’s new challenge: Making its chips and sodas colorful without artificial dyes
  • What CEOs are saying about the government shutdown
  • Report: The Financial Landscape of Sub-Saharan Africa
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.