Millennials are bearish on stocks

The Future. Millennials are looking for a little more self-expression and risk-taking when it comes to their investment portfolio. They’re investing three times more than older Americans into alt-investments like crypto, real estate, and art and only half as much into stocks and bonds. While Bank of America only surveyed wealthy investors, those habits could easily be applied to the generations as a whole… which could explain the gold rush to all things Web3.

Spread the wealth
Fast Company broke down a Bank of America survey of Millennials and Gen Zers investors (well, the rarified cohort who have $3 million to invest) and found that classic stocks and bonds just aren’t cutting it like they used to.

Here are some highlights:

• Three-quarters of investors between the ages of 21 and 42 don’t believe they’ll “beat the market” by just investing in stocks and bonds, while only 32% of older Americans believe that.
• So they’re investing 15% of their portfolio into crypto, (compared to only 2% of older investors) with 33% saying it’s a “smart long-term investment” and 35% saying crypto will go mainstream sometime between 2025 and 2027.
• Younger investors also park their money into real estate, private equity, ESG funds, as well as directly investing in companies.
• On the other hand, older Americans prefer domestic equities (index funds, mutual funds, etc.), real estate, and emerging markets funds.
• Additionally, young investors love art, with 66% owning pieces, compared to 23% of older investors).
• 83% of young investors bought a piece of art in the last year… with 42% saying they’re “very likely” to turn around and sell it when it becomes “valuable” (major NFT vibes).

With Millennials and Gen Zers set to inherit about $73 trillion in two decades, those investing habits could greatly reshape the economy.