A recent study by Bank of America has shown that Millennials and Gen Z Americans are less trusting of traditional investments like stocks and bonds. In fact, 72% of young investors do not believe that these investments can deliver above-average returns. The majority of younger respondents cited social media as their primary source of financial information.
Among the investment options available, real estate, crypto, and private equity were the top choices for growth opportunities among millennials and Gen Z. On the other hand, more than 40% of Gen X and older investors still viewed domestic stocks as the best chance for growth.
The survey included a sample size of 1,007 respondents over the age of 21 with at least $3 million in investable assets. The report suggested that the cautious investment preferences among young investors may be influenced by past bear markets and significant losses in stock prices.
It is interesting to note that social media was revealed to be the primary source of financial content for nearly half of millennial and Gen Z respondents, followed by online articles and videos. Older investors preferred to get their financial news from online articles, newspapers, and television. However, it is worth noting that astrology or tarot cards were not mentioned as sources of financial information in the survey.
Overall, it is clear that younger investors have different investment preferences than older generations. While traditional investments may still be popular among older investors, real estate, crypto, and private equity are becoming increasingly popular among millennials and Gen Z due to their perceived growth opportunities.
Furthermore, social media has become a major influence on financial content consumption among younger generations. It is important for investors to stay up-to-date on various investment options and to seek out reliable sources of financial information before making any investment decisions.
In conclusion, while traditional investments may still hold some value for older generations, newer investment options like real estate, crypto, and private equity are becoming increasingly popular among younger generations due to their perceived growth potential. As such, it is important for investors to stay informed about various investment options and seek out reliable sources of financial information before making any decisions related to their investments.
