Wealthy young Americans are increasingly turning their backs on traditional assets in favor of more unique investments, a new Bank of America survey has found, with rich Gen Z and millennials choosing to buy watches and rare cars instead of simply stocks and bonds.
BofA's 2024 Study of Wealthy Americans surveyed more than 1,000 people who had at least $3 million in household investable assets, and found that 72% of those aged 43 and younger were "skeptical" about solely investing in traditional assets. Conversely, just 28% of those aged 44 and above were cautious about holding all of their wealth in stocks and bonds.
Part of that reason, the survey found, is that 94% of Gen Z and millennials are interested in collectibles with watches, jewelry, and sought-after wines and spirits topping their wish list. They also show an interest in rare cars, antiques, sneakers and art.
Their interest is perhaps unsurprising—after all, the soon-to-be "wealthiest generation in history" has already shown an interest in the finer things in life. In January, a report from Bain & Co revealed that by 2030, Gen Z will account for 25% to 30% of luxury market purchases, while millennials will account for 50% to 55%.
Authors Claudia D'Arpizio, Federica Levato, Andrea Steiner, and Joëlle de Montgolfier added: "Fueled by an investment mindset, jewelry was set to reach €30 billion in market value in 2023, with fine jewelry affirming itself as a bright spot for investments amid uncertainty... Watches continued to thrive despite a rising polarization around a few industry winners."
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