October 11, 2017: 11:01am
According to a Bank of America survey, younger rich Americans are more likely to shun traditional investments in favor of riskier ones because they think they're more likely to bring higher returns.
The younger elite are putting their money into the virtual currency.
Only 32% of older respondents said it was possible to achieve above average returns by investing in stocks and bonds.
Younger millionaires are more likely to allocate 25% of their portfolios to stocks and index funds than older millionaires.
Younger millionaires allocate 15% of their portfolios to digital assets, far more than the 2% average allocation for those over 42 years old.
A majority of younger respondents accumulated their fortunes via inheritance according to a survey by the bank.
Younger millionaires were more likely to invest in socially responsible investments than older ones.
The market has not been as bad as stocks and cryptocurrencies have been. The S&P 500 is down 25% so far this year. Over the last two and a half years, the S&P has provided a 45% return from its March 2020 low, compared to a 210% return for bitcoin, while both stocks and cryptocurrencies have exploded in value.
18%. That is the share of Americans who have invested in or used a cryptocurrencies. 29% of respondents ages 18 to 29 invested in or used acryptocurrencies, compared to 22% of those ages 30 to 49, 8% of those ages 50 to 64, and 3% of those ages 65 and older.
BofA says that rich young people have lost confidence in the stock market.
Young men are the super user of CRYPTO. 42% of U.S. males have bought currency.
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