The total fertility rate of 0.72 in South Korea indicates a major shift in intergenerational wealth transfer and investment strategies

We are standing at multiple pivotal turning points in history. The three pillars that have supported the global economy over the past 40 years—demographic bonus, division of labor driven by globalization, and versatile technological progress—are simultaneously undergoing structural shifts. This is not a crisis warning but a reality that investors must face head-on. In particular, the fact that South Korea’s total fertility rate has plummeted to just 0.72 is not merely a national statistic but a signal of a tectonic shift in the entire global economy. The next decade (2026-2035) will be a period where the structure of wealth and investment strategies are fundamentally reconfigured.

The Deep Societal Crisis Indicated by the “Birth Strike”

Let’s begin with the shocking data from South Korea. In 2023, the total fertility rate was 0.72—meaning, on average, women will have only 0.72 children in their lifetime. This figure far exceeds normal population fluctuations and clearly indicates that society’s foundations are destabilizing.

The neighboring country Japan faces an even more severe situation. Births are projected to fall below 670,000 in 2025—the lowest since statistical records began in 1899. The rate of decline surpasses even the most pessimistic government forecasts, illustrating how rapid this phenomenon is.

Behind this lies the “4B Movement” led by young women in South Korea—“No Marriage, No Children, No Romance, No Sex”—a real social movement. It may sound like science fiction, but it is real. At its core, this movement is a “reproductive strike” against patriarchal capitalism. Under the multiple pressures of workplace gender discrimination, unfair distribution of childcare burdens, and social stereotypes, young women have rationally decided to “terminate reproduction.”

The consequences are catastrophic. South Korea’s aging speed is the fastest in the world, with projections that by 2065, over half the population will be over 65. This will not only threaten the pension system but also severely impact national defense personnel deployment.

In Japan, young people are falling into a “low desire” state, not seeking marriage or children, having lost the once-held belief that “hard work leads to prosperity.” What they seek is low-cost personal satisfaction—akin to a Buddhist “lying down” worldview.

Western Developed Countries Are No Exception—The Spread of “Economic Nihilism”

This phenomenon is not unique to East Asia. Western developed nations are experiencing similar demographic trends, driven by different reasons but resulting in the same outcome.

The Generation born in the 2000s, known as “Generation Z,” is enveloped in a profound “economic nihilism.” They have directly experienced the 2008 financial crisis, the unlimited quantitative easing of 2020, and subsequent high inflation. No matter how much they try, they feel that the “American Dream” or middle-class life is out of reach. Rising real estate prices make homeownership seem hopeless for many.

As traditional life plans—owning a house, a car, building a family—become inaccessible, young people naturally shift their focus to “enjoying the present,” or invest in high-risk cryptocurrencies seeking a “life-changing” opportunity.

Having children is a typical “high input, long-term, low immediate return” project for them. Rational economic calculation naturally excludes it from their life plans.

Additionally, “climate anxiety” heavily influences their decisions. Many Western youth see having children as “immoral acts that bring new life into a doomed world,” which is a deep ethical reflection beyond mere economic considerations.

The $84 Trillion Intergenerational Wealth Transfer—The Fundamental Rise of Digital Assets

Understanding this “active population decline” trend reveals the biggest event of the next decade: the largest intergenerational wealth transfer in human history.

Over the next 20 years, especially during 2026-2035, a total of up to $84 trillion in wealth will transfer from the Baby Boomer generation to Millennials and those born in the 2000s. This is not just a transfer of money but a fundamental shift in the “nature” of capital.

The wealth of the Baby Boomers is mainly concentrated in real estate, blue-chip stocks, and traditional pensions, with a strong belief in “long-term holding” and “value investing.” In contrast, the younger generations—raised amid the internet, financial crises, and asset bubbles—are “digital natives.” Will they follow their parents’ investment logic?

The answer is highly likely “no.” Massive capital will fuel the rise of digital assets, especially cryptocurrencies and alternative investments. This aligns perfectly with the aforementioned “economic nihilism.”

Three Reasons for Choosing Digital Assets

Distrust in the Traditional Financial System

Generation Z has directly witnessed the 2008 financial crisis. They see fiat currencies continuously losing value and perceive the traditional banking system as inefficient and manipulated by a few. Decentralized digital assets like Bitcoin serve not only as investments but also as “safe havens” and “silent protests.”

Inaccessibility of Real Estate and Alternatives

Rising real estate prices and demographic decline forecasts make long-term preservation of real estate uncertain. Young people are increasingly attracted to the highly liquid, low-entry barrier, and high-growth potential digital asset markets.

High-Risk Appetite and the Desire for “One-Shot Wealth”

Young people no longer settle for annual returns of 4-5%. Data shows that their adoption rate of cryptocurrencies is over three times that of their parents, leaning toward speculative positions. This “live once, bet everything” mentality will drive market volatility over the next decade.

De-dollarization and Digital Assets—Seeking a New Financial Foundation

Under the push of intergenerational wealth transfer, the period from 2026 to 2035 will see the convergence of de-dollarization and the mainstreaming of digital assets. This trend is rooted not only in geopolitical factors but also deeply embedded in young investors’ preferences.

The U.S. debt scale is entering an unsustainable exponential growth phase. As interest payments erode fiscal revenues, the Federal Reserve will eventually be forced to monetize large-scale fiscal deficits, continuously printing money. This will undermine confidence in the global dollar assets.

For central banks worldwide, gold remains the primary alternative reserve asset. However, for individual investors in the young generation with vast capital, Bitcoin and stablecoins will serve as “digital gold” and “digital dollar.” They see these not just as speculative tools but as “Noah’s Ark” against the erosion of fiat currency’s purchasing power.

Simultaneously, a large-scale trend of “real-world asset tokenization” (RWA) will emerge. Young investors prefer 24/7, fragmented trading. By placing assets like real estate, art, and government bonds on blockchain, liquidity is enhanced, aligning with the new “ownership” paradigm of the 2000s generation—“My private key is my ownership.” This will be one of the most significant upgrades to financial infrastructure in the next decade, democratizing once high-threshold valuable assets.

The “Cantillon Effect” of Technology—Unequal Wealth Distribution in the AI Era

The irreversible progress of AI and robotics is clear. However, there is a misconception that technological progress automatically benefits everyone equally. The wave of AI from 2026 to 2035 is likely to exacerbate social inequality. Let’s call this the “Cantillon Effect of Technology.”

In traditional Cantillon effects, newly printed money benefits those closest to the printing press first, making them wealthier, while those at the end suffer from inflation. The same logic applies in the AI era.

Core production inputs for AI are computational power, data, and algorithmic models—extremely costly and concentrated among a few tech giants and early investors. Ordinary people are almost impossible to own these core assets.

As AI significantly boosts productivity, the newly created wealth will first manifest as rapid profit growth and stock price surges in tech companies. Shareholders and executives of these firms—“those closest to the printing press”—will be the first to benefit.

For the average worker, AI’s initial impact is not a boon but a “competitor.” Even if nominal wages increase, they cannot keep pace with asset price inflation (homes, stocks, education, healthcare) driven by technological profits. The general public will bear the brunt of the deflationary effect of technology (wage pressures) and asset inflation (inequality expansion).

Therefore, the investment strategy is clear: invest in companies owning robots and short human labor costs that can be replaced. We should become shareholders of technology, not become the cost of technological displacement.

The Rise of Prediction Markets and the “Gamification” of Finance

Market turbulence and changing investment behaviors among young generations are bringing profound changes to financial markets. The traditional “value discovery” function is weakening, giving way to “event prediction markets” that hedge uncertainty and facilitate speculation.

Platforms like Polymarket and Kalshi have experienced explosive growth from 2024 to 2025. Users can bet real money on specific event outcomes—U.S. elections, Fed rate cuts, geopolitical conflicts, etc. After regulatory approval, Kalshi’s trading volume surged, at one point accounting for over 60% of the global market.

This is not mere gambling; it is becoming a crucial new hedging tool for institutional investors. Unlike traditional hedges (gold, government bonds), prediction markets enable precise hedging at the event level. Moreover, prices in prediction markets often outperform opinion polls, reflecting collective wisdom with real money—“where there is money, there is truth.”

However, as capital flows from traditional markets into prediction markets, two major risks emerge.

First is “financial nihilism.” Funds shift from supporting the real economy to pure zero-sum games. If young investors realize it’s faster to “bet” in prediction markets than to analyze corporate financials, the foundation of value investing will be further eroded.

Second is “distortion and reflexivity.” As prediction markets grow large enough, huge sums may attempt to influence real-world events to win bets—through propaganda or misinformation—potentially turning financial markets into tools that enslave reality, with “truth” becoming a toy of capital.

Asset Allocation Strategy (2026-2035)—An Extreme Balanced Approach

Based on the above analysis, I propose a core asset allocation strategy for the next decade. Traditional diversification is no longer sufficient. What is needed is an “extreme balanced strategy.”

On the offensive: embrace “technological monopoly” and “digital scarcity.”

First, invest in beneficiaries of the “Cantillon Effect of Technology.” Concentrate holdings in leading tech giants controlling core computational power, private data, and general-purpose large models. In the AI era, the “winner takes all” landscape will squeeze out second-tier tech firms.

Second, invest in “digital scarcity.” Bitcoin (currently $68.41K, -0.97% in 24h) is a core asset against fiat devaluation and should occupy an important position in growth-oriented portfolios. As the 2000s generation gains wealth influence, digital assets will enjoy liquidity premiums.

Third, seek “population bonus residuals” in emerging markets. Avoid East Asia, focus on India and Southeast Asia—regions with healthy demographic structures—but carefully evaluate infrastructure capacity and political stability.

On the defensive: hedge against “chaos” and “event risks.”

Institutional investors should establish dedicated strategies using platforms like Kalshi to hedge specific geopolitical or policy risks.

Physical assets remain vital. As young people retreat from real estate due to “economic nihilism,” prime urban housing and land in key cities will retain value as supply-side stagnation and “old wealth” flight assets. However, caution is needed regarding property tax risks and regions with extremely limited land supply.

Finally, gold remains the last de-politicized reserve currency, serving as a foundational allocation and hedge against sovereign debt crises.

Assets to Avoid

Low-cost, labor-intensive service industries face dual pressures from rising labor costs and AI displacement, threatening profit margins.

Traditional consumer stocks dependent on population growth are also risky. In an “active population decline” society, their growth logic is fundamentally broken. Baby products, mass fashion, household-dependent consumer goods will face long-term market contraction.

Conclusion—Facing the Great Transformation

The period from 2026 to 2035 will be one of intense “big sorting.” Recognizing the despair behind South Korea’s 0.72 fertility rate, the deprivation behind the “Cantillon Effect of Technology,” and the nihilism behind financial “gamification” will determine whether you can preserve and even grow wealth during this epochal shift.

In the future, there will no longer be universal beta returns—only highly differentiated alpha. In this new world, we will either be technology shareholders, event winners, or mere annotations of the era. Rebuilding investment strategies is not just about money management but about cultivating the vision to read the times.