Women are reshaping the economy but markets have not caught up

Women are becoming a larger force in the U.S. economy through the wealth they build and inherit, and the markets and businesses serving them have been slower to adjust, according to a commentary by Morgan Stanley's Ellen Zentner. The shift is structural, and the author argues that it deserves more attention from investors than it has received.

Women's homeownership has risen from roughly 25% to 50% over four decades, a sign of their growing ability to accumulate assets on their own. That trend is expected to continue. Cerulli Associates projects $124 trillion in U.S. wealth transfers through 2048, including $54 trillion passing between spouses, with more than 95% of that going to women.

Much of that inherited money has historically been managed by men, and the firms holding it have often been slow to adapt to women's preferences. Traditional advisory relationships tend to center on the primary earner, which can overlook the spouse who may ultimately inherit and manage the assets. Zentner argues this creates an opening for firms that engage spouses earlier and build longevity and lifetime income planning into their advice.

Cerulli estimates that nearly $40 trillion will flow to widowed women, mostly from Baby Boomer and older households, and that younger women will receive about $47 trillion through 2048. The two figures overlap, because some money passed to widows will later pass to children, so they should not be added together. Research indicates women investors often focus on long-term goals and pay close attention to risk, although preferences vary widely.

Women also play a central role in household spending. According to consumer surveys conducted by MRI-Simmons, women are the principal shoppers in roughly 72% of households. In many families they decide how money is spent on groceries, healthcare, education and the care of aging parents. Zentner notes that many companies still design and sell products without them in mind, and for investors the key question is whether a company understands who is making the buying decision.

Funding for women-led businesses has lagged behind. According to PitchBook, startups founded exclusively by women accounted for 5.2% of U.S. venture capital deals in 2025 but received just 1.1% of the funding. Research links gender-diverse leadership with stronger financial performance, although the results vary and the correlation does not establish causation.

Zentner concludes that investors should look for companies positioned for changing patterns of spending, homeownership and wealth management, and avoid those still operating on outdated assumptions about who controls capital. The commentary is presented for informational purposes only and does not constitute investment advice. Its projections are estimates, and the author and Morgan Stanley caution that actual results may differ materially.

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Connor Quincy

Technology Reporter

Connor Quincy covers public affairs, politics, business, culture and daily news for Core Memo. The role focuses on verification, context, and clear explanations for readers.

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