Bank of America: Young rich people prefer cryptocurrencies! 72% believe that stocks and bonds are not attractive enough

This site (120btC.coM): Bank of America, the second largest commercial bank in the United States, recently released a report titled "2024 Bank of America Research on Rich Americans", which reveals the different views of different generations on wealth management, and As wealth shifts to younger generations, these differences in perspective may drive new patterns and trends in financial decision-making.

The report is based on U.S. individuals aged 21 and over with investable assets of more than $3 million, with a total of 1,007 respondents.

Young wealthy investors prefer cryptocurrencies

The report stated that the views of the elderly wealthy (44 and above) and the young wealthy (21 to 43 years old) are divided on the economic prospects and growth opportunities. Younger wealthy people are twice as optimistic about the state of the U.S. economy as older wealthy people and are more divided about the global economic outlook.

Consensibly, they rate their personal financial security similarly and are optimistic about the outlook for the stock market in the year ahead.

The percentage in the picture represents the proportion of people who voted "very good" or "excellent"

As for investment opportunities in today's environment, young rich and old rich also hold different views . According to the survey, 72% of young wealthy people believe that they cannot get above-average returns by investing only in traditional stocks and bonds, while only 28% of elderly wealthy people believe this. This difference in perspective affects their preferences for investment opportunities.

Young wealthy people are more inclined to non-traditional investment methods, with a special emphasis on real estate, cryptocurrency and private equity. In contrast, wealthy older adults prefer traditional investment options, particularly domestic stocks, real estate and emerging market stocks. It is worth noting that among all investment categories, the only one that is unanimously optimistic among investors of all ages is real estate.

Although interest in cryptocurrencies has declined since 2022, it remains an important part of young investors’ portfolios. The report shows that 93% of young investors plan to increase their allocation to alternative investments, including cryptocurrencies, in the next few years.

"Conservative" Young wealthy people hold the largest proportion of crypto assets

The report also shows that there is a new trend in portfolio asset allocation, and young investors seem to be completely breaking away from traditional asset allocation models. For wealthy people aged 21 to 43, whether they consider themselves conservative or active investors, their portfolio allocations are roughly the same, with an almost "even distribution" of various assets such as alternative investments, cryptocurrencies, stocks, bonds and cash. . In fact, the investor group that calls itself the most conservative has the highest proportion of investments in cryptocurrencies.

Older investors, on the other hand, revealed portfolios consistent with traditional allocation models. Aggressive investors hold more stocks and alternatives, while conservative investors hold more cash and bonds and less stocks. Among them, the proportion of cryptocurrency is less than 2%.

Portfolio allocation for each age and risk tolerance

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