Asset allocation trends by generation

I think we’ve all been through these phases in one way or another. When you’re young you take more risks because you (expect to) have plenty of time to correct mistakes. As you get older, you become more conservative.

I wonder what exactly is contained in “Alts”. If that means gold, silber, oil, etc I’m surprised. Until now, I would have always guessed that the older ones tend to like gold, silber, oil, etc.

maybe pokemon trading cards, NFTs and fractional ownership of dubious artworks.

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What is funny is that the difference between the Conservative to Agressive classes is some percent, but the age makes for such a huge tradeoff between stocks and crypto/alts.

I would have expected a much larger portion of bonds/cash for “Conservative” investors. Maybe those classes just don’t wander far from the bell curve.

Well, a 50% fall in the stock market would change the look considerably. Just imagine how the charts would change if alts/crypto went to zero and stocks halved.

It’s interesting that even the ‘conservative’ portfolio is 50% stocks.

Looks like this is just sampled across the slice of wealthy Americans.

Original report: https://ustrustaem.fs.ml.com/content/dam/ust/articles/pdf/2024BoA-PB_Study_of_Wealthy_Americans.pdf

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Thanks. The full report is quite interesting.

Young conservative has more crypto than a young aggressive. Interesting. Are they just BoA customers? That might explain it.

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