The multi-active investment platform and social network eToro cited the results of a multi-generational investment survey conducted July 18–31 among 1,000 online investors in the United States. Respondents aged 20 to 65 were generation Z – millennials, and generation X.
According to the report, more than two-thirds of US investors are afraid of a recession and would consider converting part of their stock portfolio into safer investments or hedging cryptocurrencies, commodities, or real estate.
Among the survey participants, 40% of respondents said that they would prefer to invest in crypto assets in the event of an economic recession, while 50% of generation Z said they would choose real estate. For Generation X, 38% opted for hedging through commodities.
“We believe that in the event of a recession, we will see a reduction in stock portfolios, while other asset classes, such as crypto assets, on the contrary, will show positive trends, as well as new equity models.
Historically, these investment opportunities have been limited by the high cost of assets and have been available to institutional investors, but innovation will open up these opportunities for ordinary investors” – said Guy Hirsch, managing director of eToro US.
In particular, it turned out that the recession fuels investor interest in shared ownership and new classes of assets, while 92% of those who are most concerned about the recession say that among other types of investments, they would prefer to own shares of famous works of art, religious buildings and private startups.
Of all respondents, 55% said they would sell part of their portfolio of shares in order to finance their investments in shared ownership of these types of assets.
According to Hirsch, investors want more freedom than the current financial status quo offers, and this will help attract young investors.