Young investors favor crypto over US stocks and personal brands

A recent study by Bank of America (BofA) reveals that younger investors are increasingly favoring cryptocurrencies over traditional U.S. stocks and personal brands.

The "2024 Study of Wealthy Americans" highlights a generational divide in investment preferences, with Gen Z and millennials gravitating toward alternative assets like crypto and private equity, while older generations stick to conventional investments.

According to the study, younger affluent Americans are prioritizing real estate (31%), cryptocurrencies (28%), and private equity (26%) as their key growth areas.

In contrast, older generations, particularly those aged 44 and above, prefer U.S. stocks (41%) and real estate (32%).

Katy Knox, President of Bank of America Private Bank, commented on the changing landscape, noting that the market is undergoing significant social, economic, and technological transformations, coinciding with a major generational transfer of wealth.

As this shift continues, younger investors are displaying different priorities not only in their investment strategies but also in their approaches to philanthropy.

The study reveals that older generations often assume their children share their financial and charitable values, while younger respondents are increasingly leaning toward more impactful and socially conscious giving strategies.

This disconnect is expected to influence the future of wealth management and investment trends.

As wealth transitions to younger generations, financial advisors will need to adjust their strategies to align with the preferences of this emerging class of investors.

The study surveyed U.S. adults with at least $3 million in investable assets, shedding light on these shifting priorities and their potential implications for the financial sector.