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BofA survey: Young wealthy investors remain skeptical of stocks, crypto seen as better alternative

  • 28% of young wealthy investors are focusing on crypto investments
  • A cautious mindset is what’s dominating young investors portfolio choices
  • 76% of young investors remain skeptical of traditional investments

Young investors are holding more crypto investments compared to traditional equities, according to a report from the Bank of America (BoA).

In its 2024 Study of Wealthy Americans, the bank received responses from over 1,000 respondents with at least $3 million in investable assets and were at least 21-years-old.

The survey found that among younger investors – mainly Gen Z and Millennials –  crypto and digital assets play a significant role in reshaping how America invests. BofA shows that these investors are focusing on real estate (31%), crypto and digital assets (28%), and private equity (26%).

Interestingly, 76% of young investors remain skeptical about traditional investments. They believe it’s no longer possible to achieve above-average investment returns by investing solely in traditional stocks and bonds.

On the flip side, those aged 44+ favor domestic equities (41%), real estate (32%), and emerging marketing equities (25%).

Katy Knox, president of Bank of America Private Bank, said that the investors are going through a “period of great social, economic and technological change alongside the greatest generational transfer of wealth in history.”

Cautious mindset

According to the survey, “the portfolio choices of younger people do suggest a perspective shift between the generations,” adding that while crypto is often compared to risk-averse investments such as gold, “it could be that a cautious mindset is what dominates some of these portfolio choices.”

And it’s the past that may be to blame for the cautious mindset of younger investors. For them, they’ve experienced two market crashes, which may have made them skeptical about investing in the stock market.

It’s because of this that they are looking beyond traditional stocks and bonds to build their wealth as they look to diversify their investments.

The post BofA survey: Young wealthy investors remain skeptical of stocks, crypto seen as better alternative appeared first on CoinJournal.

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Bitcoin’s Price Slides as China Pares Stimulus Plans

  • Bitcoin’s September rally, where the crypto rose 21%, was driven largely by Chinese stimulus packages.
  • Market players are underwhelmed as the Chinese government’s stimulus plans did not live up to their expectations.
  • Bitcoin failed to stay above $64,000 as the market seeks a catalyst despite ‘Uptober’ expectations.

The most recent Bitcoin rally, which started in early September and is believed to have been driven largely by Chinese stimulus packages, has begun to fizzle out. The largest crypto by market capitalization briefly crossed the $66,000 mark on September 27th but could not sustain the rally. As of October 2nd, it fell to $60,000 and trades at $62,700.

Chinese stimulus

While September is historically a bearish month for cryptos, Bitcoin performed favourably last month driven largely by a stimulus program from the People’s Bank of China (PBOC) in response to slowing economic growth and Fed rate cuts.

The PBOC slashed rates on medium-term lending and the 7-day repo to boost economic activity, a measure known to improve sentiments around risky assets. Mortgage rates and minimum downpayment requirements for all types of homes were also slashed to support China’s housing market.

Expectations remained that the government would be willing to sustain its stimulus efforts through a multi-trillion-yuan spending plan; however, the government announced that it will frontload 100 billion Yuan from its 2025 budget in addition to another 100 billion to support the construction industry, a far cry from expectations.

Uptrend catalysts for the crypto market

The focus on Chinese stimulus comes at a point when the crypto market awaits a catalyst to spur a rally. The Fed’s 50bps interest rate slash in September is expected to herald a rally, but October has been underwhelming as Bitcoin struggles to break the $64,000 level and institutional inflows into US Bitcoin (and Ethereum) spot ETFs dwindle.

Bitcoin fell roughly 1% after the announcement of the government’s stimulus plans but recovered somewhat in the London trading session.

The post Bitcoin’s Price Slides as China Pares Stimulus Plans appeared first on CoinJournal.