BofA Survey: Young Wealthy Investors Remain Skeptical of Stocks, Crypto Sees Better Option
28% of young investors are focusing on crypto investments Cautious thinking of young investors' portfolio choices 76% of young investors are skeptical about traditional investments.
Young investors hold more crypto investments compared to traditional stocks, Bank of America (BoA) reports.
In the year In its 2024 survey of wealthy Americans, the bank polled more than 1,000 respondents who had at least $3 million in investable assets and were at least 21 years old.
The survey found that among younger investors — mainly Gen Z and Millennials — crypto and digital assets are playing a big role in shaping how America invests. BofA shows that these investors are focusing on real estate (31%), crypto and digital assets (28%) and private equity (26%).
Interestingly, 76 percent of young investors are skeptical about traditional investments. They believe that it is impossible to achieve above-average investment returns by investing only in traditional stocks and bonds.
On the flip side, people age 44+ prefer domestic stocks (41%), real estate (32%), and emerging market stocks (25%).
Kathy Knox, president of Bank of America Private Banking, said investors are experiencing “great social, economic and technological change alongside the largest generational wealth transfer in history.”
Careful thinking
According to the study, “young people's portfolio choices reflect a shift in attitudes between generations,” suggesting that crypto can be a cautious mindset when often compared to riskier investments like gold. These portfolio choices.
It is the past that may be responsible for the cautious mindset of young investors. For them, they experienced two market crashes, which made them skeptical about investing in the stock market.
That's why they look to diversify their investments beyond traditional stocks and bonds to build their wealth.
