Caixin Media reported on July 15th (Editor Huang Junzhi) that Tom Lee, the co-founder and research director of U.S. investment firm Fundstrat Global Advisors, made an extremely optimistic prediction: the Standard & Poor's 500 index will surpass 15,000 points by 2030.

As of the close of US stocks last Friday,$S&P 500 Index (.SPX.US)$up 0.55%, reporting 5,615.35 points.

In his latest interview, Lee said, "If this is the normal cycle of the S&P following demographic patterns...by the end of this decade, the index should reach 15,000 points."

Here are four charts he shared to illustrate why he is so bullish on the stock market.

1. Thank you, Millennials

He pointed out that the average age of the millennial generation is now around 31, with 2.5 billion people globally entering the golden age of 30-50 years old.

He said, "This will be the third cycle in which the U.S. stock market enters a period of annual return rates of up to ten times. You have experienced the prosperity of the 20s, followed by the end of the 50s to the end of the 60s, and this is the third cycle."

"These cycles all coincide with the sharp increase in the number of 30-50 year olds, in other words, the number of adults in their golden years has skyrocketed, and this time it is driven by the millennial and Gen Z generations." He added.

2. Stock market peaks and demographic data

Historically, when the population reaches its peak around the age of 50, the stock market also peaks, as they approach retirement age and typically reduce their spending.

For example, when the Greatest Generation reached its peak in 1930, it coincided with a bear market in the stock market that lasted for many years; fast forward to 1974, when the Silent Generation reached its peak, the U.S. stock market also experienced a painful downturn of around 35% for several years; and the baby boomer generation peaked in 1999, just a year before the stock market plunged into a bear market that lasted for several years.

Lee said that the millennial generation will not peak until 2038, which means there is still a lot of room for the stock market to rise from now until then.

3. Technology will solve the global labor shortage problem

Lee said that as the global labor shortage becomes more severe in the coming years, technology spending will increase significantly.

He said, "As the global labor shortage, artificial intelligence is providing digital labor to the world, a huge opportunity for U.S. technology companies. So I think the combination of these two forces has driven the high returns of the stock market in the last decade."

"I think there will be a lot of dollars spent on American technology products, because by the end of this decade, the world will be short of 80 million workers, which means that about $3 trillion in labor wages will be transformed into 'technology', so this means that American technology and artificial intelligence suppliers will have $3 trillion in revenue." He added.

4. Funds will flow into US technology stocks

As more and more companies invest trillions of dollars in technology to solve the global labor shortage problem, this will push the technology sector's proportion in the S&P 500 to 50%. The technology sector currently accounts for about 30% of the index.

"If the profits of US companies continue to grow at this rate, the US PE ratio should increase. Capital will flow into the US. Can you find the best and most important technology companies in other parts of the world? They are basically all in the US," he said.

Editor/Somer