Editor's Note: Below is a brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more about subscribing.

Why Millennials Won't Save Europe's Economy - selfie

Last week, the S&P 500 hit its 27th record closing high of 2017. Meanwhile, European Stocks continued to suck wind. In other words, “cheap” European stocks got cheaper relative to their US growth counterparts.

  • S&P 500: +0.5% on the week to +10.4% YTD 
  • EuroStoxx 600: -1.7% on the week to +5.2% YTD 

Given the massive difference in pending long-term growth rates of their critical 35-54 year old populations, this makes nothing but sense to us.  As you can see in today’s Chart of The Day, rates of change in #Demographics always matters.

For the Eurozone as a whole, the growth rate of 35-54 year olds by 2030 will be an estimated -0.7% year-over-year. This compares to +1.0% year-over-year in the U.S., thanks to a lift from Millennials who have now officially surpassed Baby Boomers as the nation's largest living generation.

If we’re right, the best of both Southern European growth and inflation (in year-over-year rate of change terms) is in the rear-view mirror. 

Why Millennials Won't Save Europe's Economy - 07.24.17 EL Chart