Rich Young Americans Are Turning Away from Stocks — Here’s Where They’re Putting Their Money Instead

The stock market has long been seen as the default destination for building wealth but a younger generation of affluent investors is challenging that tradition. According to a recent Bank of America survey, wealthy individuals aged 21 to 43 with at least $3 million in assets now allocate just 25% of their portfolios to stocks. In contrast, older investors (aged 43+) have over half of their holdings in equities.

So, where is this younger, wealthier crowd parking their capital? It turns out, they’re betting big on alternative assets that offer diversity, security, and high returns even if it means stepping outside traditional markets.

Gold: The Ultimate Inflation Hedge

Gold is having a moment again. Roughly 45% of wealthy young investors already own gold, and another 45% are planning to add it to their portfolios. Why the surge?

Gold has long been a go-to during uncertain times, serving as a hedge against inflation and market volatility. With geopolitical tensions and economic uncertainty still lingering, many see gold as a safe haven.

The value of gold reached around $2,700 per ounce in early 2025, reflecting this surge in demand. Today, you don’t have to store bars of gold in a vault. A Gold IRA lets you invest directly in physical precious metals within a tax-advantaged retirement account. Some providers even offer bonuses like free metals with qualifying purchases or fee-free rollovers from existing IRAs.

Real Estate: Always in Demand

Real estate remains a favorite among high-net-worth investors. It’s tangible, historically resilient, and often outpaces inflation. According to the survey, 31% of young millionaires believe real estate presents the greatest opportunity for growth.

And now, thanks to platforms like Arrived, investors can buy fractional shares in high-potential rental and vacation properties for as little as $100. These investments generate passive income and allow participation in a market that was once only accessible to the ultra-wealthy.

Backed by notable investors like Jeff Bezos, Arrived handles all property management while investors collect quarterly dividends all without the landlord headaches.

Art: A Creative and Lucrative Play

Investing in fine art may sound like a luxury, but platforms like Masterworks are changing the game. Younger investors are diving into this $1.7 trillion global asset class for its returns and diversification benefits.

Contemporary art has historically returned 11.5% annually from 1995 to 2023 outperforming the S&P 500. Masterworks enables investors to buy fractional shares in works by legends like Banksy and Picasso. When the artwork sells, investors receive a portion of the profits, with recent exits delivering annualized returns of up to 21.5%.

Private Equity: High Risk, High Reward

Private equity investing putting money into private companies not traded on stock exchanges is gaining serious traction. The Bank of America survey shows over 25% of younger millionaires identify it as one of the best opportunities for growth.

These investments typically offer higher returns but require longer holding periods and carry more risk. Still, platforms like Fundrise are making private equity more accessible, allowing investors to gain exposure to private real estate, debt, and venture capital with relatively low barriers to entry.

Fundrise helps build tailored portfolios and manages over $7 billion in assets, offering quarterly dividend opportunities and long-term growth.

Cryptocurrency: No Longer Just a Trend

Crypto isn’t just a buzzword anymore it’s a core portfolio holding for younger investors. Bank of America found that 29% of rich young Americans view crypto as a top growth opportunity, compared to only 7% of their older peers.

These younger investors now allocate about 15% of their portfolios to digital assets like Bitcoin, Ethereum, and others. Platforms like Gemini make it easy to buy, sell, and store more than 70 cryptocurrencies, offering tools like limit orders, recurring purchases, and secure wallets.

With the U.S. government under President Trump eyeing a national Bitcoin stockpile and crypto markets reaching a global market cap of $3.72 trillion, it’s no wonder this asset class is in high demand.

The Bottom Line

Rich, young Americans are redefining what it means to invest wisely. They’re cautious about traditional stock markets and eager to diversify with assets like real estate, gold, crypto, private equity, and even fine art.

Their approach is strategic: reduce risk through diversification, hedge against inflation, and capitalize on long-term growth opportunities.

If you’re building wealth or looking to protect it, these trends offer a glimpse into the future of smart investing and a blueprint you might want to consider following.