--- title: Forget About Stocks — Young Investors Love Collectibles and Crypto description: A new study from Bank of America shows generational divides among the types of investments Americans are making. authors: - name: Jordan Chussler role: Editor, Investing and Banking url: https://money.com/author/jordan-chussler/ bio: Jordan is an investment editor and CPFC who specializes in traditional equities, gold and other precious metals, retirement savings and income investing. He combines his personal and professional interests in finance and education to help readers increase their financial literacy and make better investment choices. education: Lynn University certifications: Certified Personal Finance Counselor at_money_since: 2023 articles: 130 covers: - Investing - Banking - Credit - Credit Cards - Economy and Politics - Housing - Identity Theft - Insurance - Loans - Mortgages - Personal Finance - Professional Services - Retirement also_seen_in: - Weiss Ratings - 24/7 Wall Street - Better Investing - Yahoo Finance - Nasdaq - Investing.com - Marketbeat - MSN Money social: - https://www.linkedin.com/in/jordan-chussler-b3597811/ editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Investing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2024-06-21T16:06:32.000Z' modified: '2024-06-21T16:06:32.000Z' section: Investing tags: - News word_count: 803 canonical: https://money.com/young-investors-collectibles-crypto/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo collage of a painting, handbag, signed baseball , a Bitcoin and a Ethereum coin.](https://img.money.com/2024/06/Investing-Stocks-Collectibles-Crypto.jpg) Stark differences of opinion between age groups is a tale as old as time. The latest instance is investing: Among younger Americans, stocks are losing favor as an asset class, with [crypto](https://money.com/crypto-exchanges/) and alternative investments gaining a significant share of portfolio allocations. This is according to Bank of America's recently concluded "[2024 Study of Wealthy Americans](https://ustrustaem.fs.ml.com/content/dam/ust/articles/pdf/2024BoA-PB_Study_of_Wealthy_Americans.pdf)," which provides insights into the shifting investment landscape among various age groups. The report found several divisions between people aged 44 and up and their 21- to 43-year old counterparts, with the former holding 55% of their [investments in stock](https://money.com/how-to-buy-stocks/), 5% in alternatives and 1% in crypto, and the latter holding 28% in stock, 17% in alternatives and 14% in crypto. ## Build your ultimate crypto portfolio ### OKX provides a versatile crypto trading platform suitable for all levels of investors, offering both power and user-friendliness in one space. Start your investment journey today by clicking on your state below! [Start Investing](https://money.com/pr/v29a819f1cc9?ap_referrer=%2Fyoung-investors-collectibles-crypto%2F) ## The generational investment divide The study determined that members of older and younger generations are "surprisingly far apart on many investment issues, which could change allocation trends as wealth transfers to younger Americans," per a news release. Their views also diverge on "outlooks and growth opportunities." While the report suggests that investors have shifted away from traditional strategies like the [60/40 portfolio](https://money.com/why-this-classic-investment-strategy-still-makes-sense/) (i.e., 60% stocks, 40% bonds), that trend has been more pronounced among Americans under the age of 44. As a result, younger Americans are embracing greater diversification in their holdings. According to the study, younger investors are drawn to real estate, cryptocurrencies and private equity, while older adults prize domestic equities, real estate and emerging equities. Bank of America added that "older investors rely most on traditional stocks and bonds, \[while\] younger investors hold a more evenly spread mix of asset classes — including an average of 31% in alts and crypto." Much of this gap can be attributed to a distrust in traditional markets. Significantly, 72% of respondents aged 21 to 43 continue to be skeptical of traditional investments, with 75% of younger people saying that it's "no longer possible to achieve above-average returns with stocks and bonds alone." Just a quarter of those in Gen X and above say the same. ## Unlock the world of Cryptocurrency ### Crypto Wallets make life on the blockchain simple and secure. Take control of your investment by downloading your wallet today. [Learn More](https://money.com/pr/y638e9f98a1f?ap_referrer=%2Fyoung-investors-collectibles-crypto%2F) ## The rise of alternative assets The rise in popularity of crypto and alternative assets is a relatively recent phenomenon. [Bitcoin](https://money.com/bitcoin-surges-toward-all-time-high/), the torchbearer of digital assets, debuted in 2009 and it wasn't until July 2015 that Ethereum, the second-largest crypto by market cap, hit the market. On the other hand, alternative assets — or alts — have been around for hundreds of years. Artworks, for example, were first featured by auction houses like Christie's and Sotheby's in the 1700s. However, as investments, they were reserved for members of the wealthy class. It wasn't until 12 years ago that alts became broadly accessible to the masses. In April 2012, former President Obama signed into law the Jumpstart Our Businesses Startup (JOBS) Act. In doing so, retail traders gained access to asset classes previously reserved for institutional and accredited investors. Specifically, Regulation A of the act allowed for "an exemption from the registration requirements, allowing companies to offer and sell their securities without having to register the offering with the SEC." And while companies still must comply with SEC regulations, Regulation A expedited the rush of investments into alts. This provision of the JOBS Act provides increased access to securitized assets like fine art, rare wine collections, sports memorabilia, luxury automobiles, designer handbags, first-edition comic books, [crowdfunded real estate](https://money.com/best-real-estate-crowdfunding-sites/) and even [skeletal dinosaur remains](https://rallyrd.com/collections/the-triceratops-prorsus-skull/). As with traditional equities — like stocks, [exchange-traded funds](https://money.com/what-is-an-etf/) and mutual funds — companies are now able to offer individual shares of alts amounting to $50 million per year without needing to meet SEC registration requirements. Regulation A also allows average Americans to participate in other alts like private equity. This is commonly achieved through Regulation A+ crowdfunding, which is commonly used by startups and entails SEC audits and SEC offering approval. Among the overall alternative investment landscape, private equity is behemoth. Consulting firm McKinsey & Company found that in 2023, private equity set a record for assets under management by reaching $1.5 trillion, good for an 18% increase over the year prior. ## Create your cryptocurrency portfolio today ### Coinbase has a variety of features that make it the best place to start trading. Click below to start investing today! [Start Investing](https://money.com/pr/e104f72e29f6?ap_referrer=%2Fyoung-investors-collectibles-crypto%2F) ## A grain of salt... Though investing trends are certainly shifting with time, be careful not to jump to conclusions based on a single analysis. Bank of America's report "represents American adults with $3 million or more in investable assets," which is not emblematic of the median American household's net worth of $162,350, according to data available from the Federal Reserve. The sampling used in the Bank of America study included 1,007 qualified participants. 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