A recent survey by Bank of America sheds light on the investment preferences of younger Americans, specifically Millennials and Gen Z. The study found that these investors are increasingly turning to alternative investments such as real estate, cryptocurrency, and private equity over traditional options like stocks and bonds.
Nearly three-quarters of respondents under 44 believe that it is no longer possible to achieve high returns by investing solely in stocks and bonds. This skepticism is likely due to past market downturns that have left a lasting impact on the financial mindset of the younger generation. Despite conventional wisdom suggesting that younger investors should have a higher exposure to stocks, the study found that they actually hold fewer stocks relative to other age groups. Instead, they are more interested in non-traditional investment opportunities.
The study also looked at where young investors get their financial information. Nearly half of millennial and Gen Z respondents cited social media as their primary source, followed by online articles and videos. This is in stark contrast to older investors, who prefer to get their financial news from online articles, newspapers, and television. The survey did not inquire about alternative sources of information such as astrology or tarot cards.
