Bank of America’s survey of more than a thousand wealthy Americans found a significant shift away from investment in stocks by younger generations. This was also reflected in last year’s survey. While those aged 44 or older allocate 55% of their investments to stocks, for the younger age groups, the figure is almost half that (28%), with a far keener interest in cryptocurrencies (14% versus 1%) and alternatives (17% versus 5%).
The figures are particularly important because there’s expected to be an $84 trillion intergenerational wealth transfer through 2045. Around 42% of the transfers are expected from high net worth individuals (HNWI).
Looking at where the different generations see future growth prospects, stocks rank top for the older generations and bottom for the younger. While that might look bad for corporate investment, when you add up the investments in different types of companies (excluding personal companies), the figures are surprisingly similar at 57% for the younger group and 56% for the older.
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