These Will Be The Best Long-Term Investments According to Rich Millennials

These Will Be The Best Long-Term Investments According to Rich Millennials

Best Long-Term Investments According to Rich Millennials: Millionaire millennials are not deterred by the collapse of cryptocurrencies and “fungible tokens” this year and still see them as the No. 1 way to create long-term wealth, according to a new study.

These Will Be The Best Long-Term Investments According to Rich Millennials
These Will Be The Best Long-Term Investments According to Rich Millennials

Based on a Bank of America private survey, people aged 21 to 42 have more than $3 million in investable assets, including cryptocurrencies and so-called “digital assets” as the top opportunity for long-term wealth creation, including stocks, among other things. has been placed ahead. Bank.

Some 29% cited digital currencies and online images as a top investment opportunity, while US stocks were cited by just 12% and stocks linked to international or emerging markets by 15%.

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Real estate by crypto, at 28%, private equity, direct investment in companies, and “companies/funds focused on ESG,” means those focused on environmental, social, and governance issues, which were cited as top opportunities. A quarter of those belongs to the age group.

This is considered a remarkable discovery. The cryptocurrency has fallen this year, with the benchmark, bitcoin, falling more than $20,000 after peaking at around $70,000 last year. All together around $2 trillion has been wiped out by the notional value of all associated digital “currencies” since the peak of last year, although at around $1 trillion they still sport a substantial market-linked value.

But apparently many wealthy millennials are surprised.

About two-thirds, or 64%, of them, said they understand cryptocurrencies very well. The top source of their information was social media. Some 53% said they had received advice on investing in cryptocurrencies through social media,

This year’s fall has been described by crypto enthusiasts as “crypto winter” or “digital winter”, a clever phrase implying that another spring and summer will follow in due course.

Perhaps, but before doing so, cryptocurrency fans will need to explain exactly what these things are all about. There appears to be no water in any of the arguments made so far for bitcoin and other cryptocurrencies. They are not needed for financial transactions, they do not reduce costs, and are bad for the environment.

Claims that they are a “safe haven” against economic and political turmoil, and serve to provide protection against inflation, have shown very poor performance so far this year.

According to basic economics, price is a function of “supply” and “demand”, with prices rising only when the latter exceeds the former. Since the supply associated with the new digital currencies is functionally infinite, it remains a mystery why the price increase is necessary.

Coinmarketcap.com reports price data associated with approximately 10,000 individual digital currencies so far.

At the same time, other “digital assets” that enjoyed the frenzy in the past year were also so-called “fungible tokens”, formerly known as a picture or even a screenshot on your iPad.

According to the survey, more than half of Millennials said that they have directly or indirectly invested in non-fungible tokens.

Just over 1,000 people were surveyed by Bank of America who had more than $3 million. The survey was conducted during May and June.

Enthusiasm for digital currencies is not the only significant finding in the survey.

Keeping their money where their mouths are, young investors were reported by young investors to put on average only 25% of their portfolios in stocks – while those aged 43 and older held more than twice the average or more than 55%. Traditional economic theory argues that due to the volatility of the stock market, it is imperative that younger investors have higher allocations to stocks and older investors have lower allocations.

During this summer there was a lively debate among the stock exchange Nostradamus about whether investor opinion has turned very bearish on stocks. Market gurus usually anticipate some sort of “capitulation” signal at market bottoms – a sign that has been thrown in the towel by so many investors that there is no one left to sell. While monthly surveys by Bank of America’s institutional wealth managers show that some level of associated surrender has already occurred, other studies by the bank show that high-net-worth individuals are hanging on.

But the lack of interest in stocks among young wealthy investors is certainly significant. The downturn in the stock market may not be at the most possible levels, but it is very high.

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