A recent Bank of America private bank study shows significant trends among 21- to 42-year-old high-net-worth investors compared with those aged 43 or older, particularly in their approach to alternative investments. Eighty percent of younger investors are turning to alternatives rather than traditional asset classes. This would seem to raise three main questions:
- Is the younger generation on the right track, and should older investors therefore be following their example?
- What is the rationale behind this trend?
- What type of alternatives are the millennial generation choosing – and why?