Morgan Stanley’s Ellen Zentner: Women are reshaping the economy. Markets haven’t caught up

Morgan Stanley’s Ellen Zentner observes that women are emerging as a formidable force reshaping the global economy, yet financial markets have yet to fully adapt to this structural shift. Over the past four decades, women's homeownership rates have surged from around 25% to 50%, signaling their growing ability to accumulate assets independently.

This trend is expected to continue, with Cerulli Associates forecasting that $124 trillion in U.S. wealth will be transferred through 2048, including $54 trillion passing between spouses, with more than 95% going to women.

The current advisory paradigm often focuses on the primary earner, neglecting the spouse who may eventually inherit and manage the assets. This oversight presents an opportunity for financial institutions to engage spouses earlier and integrate lifetime income planning into their advice. A new breed of financial decision-makers is on the rise: women are not only earning and accumulating assets but are also projected to receive a substantial amount through inheritance.

Nearly $40 trillion in wealth is expected to flow to widowed women, primarily from Baby Boomer and older households, while younger women will inherit about $47 trillion by 2048. Most of this inherited wealth has been managed by men, and the firms holding it have been slow to adapt to women's preferences.

Research indicates that women investors typically prioritize long-term goals and are meticulous in their assessment of risk, although preferences can differ significantly. For financial advisors, a significant inheritance can prompt a reevaluation of financial relationships traditionally centered around the husband. Women are the primary shoppers in approximately 72% of households, according to consumer surveys by MRI-Simmons.

They often dictate spending on groceries, healthcare, education, and care for aging parents. However, many companies still design and market products without women in mind.

Investors must consider whether a company understands who is ultimately making the purchasing decision, irrespective of gender. Funding for women-owned businesses remains underfunded, with startups founded exclusively by women accounting for only 5.2% of U.S. venture capital deals in 2025, yet receiving only 1.1% of the funding.

Research suggests that gender-diverse leadership correlates with better financial performance, though causation cannot be definitively established. Investors should seek out companies that are poised to capitalize on evolving patterns of spending, homeownership, and wealth management, while avoiding those still operating under outdated assumptions about capital control.

Women's economic influence is already palpable, and investors can begin questioning which businesses are responding to this shift.