.elementor-panel-state-loading{ display: none; }
total-news-1024x279-1__1_-removebg-preview.png

LANGUAGE

SELECT LANGUAGE BELOW

Gen Z is ditching traditional investments for classic cars, sneakers and wine – Fox Business

For many years, many Americans have believed that traditional stock and bond investing was the best way to build wealth.

But a growing generational gap is emerging between affluent millennials and Gen Z, who are abandoning longstanding investment habits for portfolios centered on collectibles and cryptocurrencies.

A new Bank of America survey of affluent Americans found that just 14% of Gen Z and millennial investors believe stocks are the best opportunity for growth, compared to 41% of investors over the age of 44.

In fact, an overwhelming majority of younger investors (about 72%) believe it is no longer possible to earn above-average investment returns by investing exclusively in stocks and bonds. This contrasts sharply with 28% of investors over the age of 44 who hold the same view. Only 47% of younger investors’ portfolios are invested in stocks and bonds, while older investors have about 74% invested in these more traditional assets.

High inflation pressures more retirees to consider returning to work

David Gooding, president and founder of Gooding & Company, left, and auctioneer Charlie Ross attend the Gooding & Company auction at the 2023 Pebble Beach Concours d’Elegance on August 19, 2023 in Pebble Beach, California. (Photographer: David Paul Morris/Bloomberg via Getty Images/Getty Images)

Instead, these young, wealthy Pouring money Invest in alternative investments.

The survey found that about 94% of Gen Z and millennial investors collect items like watches, classic cars, wine, sneakers, and antiques, while only 57% of baby boomers are interested in the same collectibles.

Inflation has risen 20% since President Biden took office.

“Younger people’s portfolio choices suggest a shift in generational perspective,” the report said. “Just as young people and older people evaluate investment opportunities differently, they may also view risk differently.”

Used Rolex watches on display

Pre-owned luxury Rolex watches are on display at Seregins Fine Timepieces in San Francisco, California on August 4, 2023. (Justin Sullivan/Getty Images/Getty Images)

About 31% of young investors see real estate as a top investment opportunity. Cryptocurrencies and other digital assets It came in a close second with 28%. In contrast, only 4% of older investors believe cryptocurrencies are a good investment opportunity.

Age is a “major driver” when it comes to interest in cryptocurrencies. Despite lower overall usage, younger people are 7.5 times more likely to have cryptocurrencies in their portfolios and five times more likely to say they understand cryptocurrencies fairly well, according to the survey. One reason may be that more than half of younger Americans said social media was their source of crypto advice, while older investors are more likely to say they got advice from online research.

Click here to get FOX Business on the go

“We are living through a time of great social, economic and technological change, alongside the largest intergenerational wealth transfer in history,” said Katie Knox, president of Bank of America Private Bank. “Our research finds that wealthy Americans are focused on diversifying their assets, on long-term goals and on making a lasting impact with their wealth.”

Bank of America surveyed more than 1,000 respondents with at least $3 million in investable assets.

Facebook
Twitter
LinkedIn
Reddit
Telegram
WhatsApp