Young investors see crypto as better alternative to US stocks, personal brands: BofA

A recent study by Bank of America reveals a significant shift in investment preferences among young investors, highlighting a generational divide in attitudes towards traditional versus alternative assets. As members of Generation X approach their 60s, a wealth transfer is taking place that is influencing investment strategies, with cryptocurrencies gaining traction among younger investors.

The 2024 Study of Wealthy Americans found that affluent Gen Z and millennial investors are increasingly prioritizing asset classes like real estate (31%), cryptocurrencies (28%), and private equity (26%) over traditional investments. In contrast, older generations, particularly those aged 44 and above, tend to favor U.S. stocks (41%) and real estate (32%).

This trend underscores how younger investors are embracing alternative investment opportunities, signaling a potential shift in the landscape of wealth management and investment strategies as they come into greater financial power.

Katy Knox, president of Bank of America Private Bank, emphasizes that we are witnessing a transformative period characterized by significant social, economic, and technological shifts, coinciding with the largest generational transfer of wealth in history. This transition is marked by a distinct difference in values and investment priorities between generations.

While older generations tend to believe that their philanthropic values will be passed down to their children, the study indicates a disconnect among younger investors. They advocate for more impactful and innovative giving strategies, reflecting their desire for meaningful contributions.

As wealth shifts to this younger demographic, these differing perspectives are expected to shape new investment trends. The report suggests that financial advisors will need to adapt their strategies to cater to the evolving needs and preferences of this emerging class of investors. The study surveyed U.S. adults with at least $3 million in investable assets, highlighting the significance of these trends in the high-net-worth segment.