Young, affluent Millennials and Gen Z investors are moving their money into alternative assets, such as pre-IPO unicorns, real estate, crypto, and collectibles, due to skepticism about traditional markets. Despite concerns about the risks and fees associated with alternative investments, many investors are drawn to them as a way to potentially achieve higher returns and rebel against traditional markets and institutions.
“Investor preferences are changing at the same time that the markets are evolving,” said Michael Pelzar, head of investments at Bank of America Private Bank. “Those two dynamics are at play that are feeding off of each other.”