BusinessPostCorner.com
No Result
View All Result
Thursday, June 19, 2025
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
BusinessPostCorner.com
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
No Result
View All Result
BusinessPostCorner.com
No Result
View All Result

Bank of America: Gen Z, millennials, invest in luxury, not stocks

June 19, 2024
in Business
Reading Time: 3 mins read
A A
0
Bank of America: Gen Z, millennials, invest in luxury, not stocks
ShareShareShareShareShare

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.”

Interest among collectibles—which also includes the likes of handbags and memorabilia—declines with each successive generation, with 57% of boomers saying they were interested in the asset class, falling to 55% among the silent generation.

A generation younger, 80% of Gen X—those aged between 44 and 59—are interested in collectibles though their interest hinged more on coins as well as jewelry and timepieces.

It seems younger wealthy individuals also have a different approach to sharing their assets in the future. When looking at inherited art it was clear from the BofA survey that Gen Z and millennials want other people to enjoy it as well—while 56% of those aged between 21 and 43 said they’d keep some pieces in their own private collections, 32% said they would donate one or a few pieces to museums or private foundations, and 26% said they would share some pieces with non-art related institutions.

That compares to the older generation, 77% of which said they would keep the collection for personal use with 19% apiece saying they would donate an item to a charity, foundation or museum.

This is indicative of a wider tension between older high net worth individuals and their younger counterparts. As BofA writes: “Younger people indicate a very high readiness to take on and support philanthropic causes… Yet the older generations exhibit much lower confidence; only 50% agree that the next generation is prepared to take on and support charitable causes.

“They’re even less convinced that the next generation will be more effective in philanthropy than they are, though younger people are quite assured of their abilities.”

Feeling good

Sentiment among younger cohorts is also much more optimistic than their older peers. For example, Gen Zers and millennials were twice as likely than their older peers to rate the U.S. economy ‘very good’ or ‘excellent’. While just 24% of those aged 44 and over said the economy was fairing well, that figure rises to 51% among younger generation.

The story diverges even further on a wider scale with just 6% of older respondents rating the global economy as good, compared to 46% of those aged 21 to 43.

On a personal level, however, both age groups felt pretty good about their prospects with 75% of those aged between 21 and 43 rating their own financial health as ‘very good’ or ‘excellent’, rising to 78% for those aged 44 and older.

However looking ahead, wealthy individuals en masse have higher hopes for the future. Looking at three specific factors: inflation, GDP and S&P500 performance, millionaires expected good news across the board in the next year.

Turning firstly to inflation (which currently sits at 3.3%), 42% are expecting a decrease with 33% expecting the levels to say the same—just 25% expect an increase.

With regards to the growth rate of GDP (currently estimated at around +1.3%) 48% expected the figure to stay the same next year, with 36% expecting an increase and only 16% expecting a decrease.

Likewise 63% expected a boost to the S&P 500 in the next year, 27% are banking on continued levels of performance with just 10% expecting a decline.

Credit: Source link

ShareTweetSendPinShare
Previous Post

What would a far-right or leftwing government mean for France’s economy?

Next Post

Secret files reveal fears over future of NHS IT giant Atos

Next Post
Secret files reveal fears over future of NHS IT giant Atos

Secret files reveal fears over future of NHS IT giant Atos

Port of LA imports fell nearly 20% in May, and it may mean higher prices and fewer choices on back-to-school and Halloween items

Port of LA imports fell nearly 20% in May, and it may mean higher prices and fewer choices on back-to-school and Halloween items

June 16, 2025
The heiress of  billion Perdue farms and the  billion Sheraton hotel empire wore hand-me-downs, still rides the subway, and flies economy

The heiress of $10 billion Perdue farms and the $12 billion Sheraton hotel empire wore hand-me-downs, still rides the subway, and flies economy

June 15, 2025
Authorities still searching for suspect in shooting of 2 Minnesota state lawmakers

Authorities still searching for suspect in shooting of 2 Minnesota state lawmakers

June 15, 2025
Carmakers seek western supplies of rare earths and magnets

Carmakers seek western supplies of rare earths and magnets

June 15, 2025
Frontline worker financial health is suffering. What HR can do

Frontline worker financial health is suffering. What HR can do

June 18, 2025
Millions on benefits to get £150 off bills

Millions on benefits to get £150 off bills

June 18, 2025
BusinessPostCorner.com

BusinessPostCorner.com is an online news portal that aims to share the latest news about following topics: Accounting, Tax, Business, Finance, Crypto, Management, Human resources and Marketing. Feel free to get in touch with us!

Recent News

Chainlink Eyes 0 Trillion Untokenized Assets Market – Can LINK Hit  on CCIP Success?

Chainlink Eyes $260 Trillion Untokenized Assets Market – Can LINK Hit $30 on CCIP Success?

June 19, 2025
Hospitals, schools and courts to get funding boost

Hospitals, schools and courts to get funding boost

June 19, 2025

Our Newsletter!

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2023 businesspostcorner.com - All Rights Reserved!

No Result
View All Result
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources

© 2023 businesspostcorner.com - All Rights Reserved!