Rich, Young Investors Are Losing Faith In The Stock Market To Deliver ‘Above Average Returns’ — Here’s Where They’re Putting Their Money Instead

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For decades, the investing formula was simple: buy stocks, stay patient and let time do the heavy lifting.

A growing number of wealthy young investors aren’t convinced anymore.

According to the 2026 Bank of America Private Bank Study of Wealthy Americans, 67% of Gen Z and Millennial investors with at least $3 million in investable assets believe traditional stocks and bonds can no longer deliver above-average returns. As a result, they’re moving money into alternative investments, private markets, real estate, crypto and emerging technology opportunities.

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The shift is already showing up in portfolios. Younger wealthy investors allocate far less to stocks than older generations while increasing exposure to alternatives and digital assets. Nearly 9 in 10 say they expect to put even more money into alternatives in the years ahead.

The New Wealth Playbook

The biggest surprise from the survey wasn’t what younger investors are buying. It was what they’re questioning.

For many affluent investors under 45, the stock market is no longer viewed as the only path to significant wealth creation.

Crypto ranked as the top wealth-building opportunity, with 58% of respondents already owning digital assets. Private markets also continue gaining favor. Among investors with at least $25 million in wealth, 77% believe more money can be made in private markets than public ones.

The attraction is simple: access to growth before a company becomes a household name.

It’s the same reason venture capital has created so many fortunes over the last several decades.

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Following The AI Money Trail

One area drawing increasing attention is artificial intelligence.

Nearly half of younger wealthy investors already use AI to research investments, according to Bank of America’s survey. But many aren’t stopping at using the technology. They’re looking for ways to invest in the businesses building it.

That includes companies operating behind the scenes.

BluSky AI is focused on one of the biggest challenges facing the AI boom: infrastructure. As businesses adopt AI tools at a rapid pace, demand for computing power continues to climb. Goldman Sachs Research projects AI-related computing demand will rise dramatically over the coming years, creating pressure on existing data-center capacity.

BluSky AI is building modular data centers designed specifically for AI workloads, targeting a market that Grand View Research projects could reach $1.81 trillion by 2030.

Robots Move From Sci-Fi To Business Plan

Automation is attracting investor attention for many of the same reasons.

Amazon founder Jeff Bezos recently committed billions toward AI and robotics initiatives, reflecting a broader belief that automation will reshape entire industries.

Companies such as Miso Robotics are already bringing that trend into real-world environments. Its Flippy Fry Station works alongside restaurant employees, automating repetitive kitchen tasks in an industry dealing with labor shortages, rising costs and high employee turnover.

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The company says its technology has already cooked more than 5 million baskets of food across more than 200,000 hours of operation.

For investors looking beyond public stocks, that’s the appeal: finding companies solving practical problems in massive markets before they reach the public stage.

A Different Kind Of Diversification

The Bank of America data points to something larger than a passing trend.

As trillions of dollars change hands through the Great Wealth Transfer, younger wealthy investors are building portfolios that look very different from those of their parents and grandparents.

They’re still investing for growth.

They’re just increasingly looking for it outside the traditional stock market.

Whether that’s private companies, AI infrastructure, robotics, real estate or crypto, the message from the next generation of wealthy investors is becoming clear: tomorrow’s opportunities may not be found on a stock ticker.

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Building Wealth Across More Than Just the Market

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry.

Arrived

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors canbuy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

BluSky AI

The rapid adoption of artificial intelligence is creating significant demand for data centers, power, and compute infrastructure.BluSky AI is building modular AI data centers designed to support next-generation AI workloads while aiming to reduce deployment timelines compared to traditional facilities. For investors looking beyond AI software and applications, the company offers exposure to the infrastructure layer that makes artificial intelligence possible.

ARK7

Residential real estate has historically provided investors with income potential and long-term appreciation, but direct ownership can be expensive and time-consuming. ARK7 enables investors to buy fractional shares of rental properties, offering access to potential rental income and real estate exposure without property management responsibilities. By lowering the barrier to entry, the platform gives investors another way to diversify beyond traditional stocks and bonds.

Immersed

Immersed is building technology for the future of work through spatial computing. Known for its AR/VR productivity platform that enables users to work across multiple virtual screens, the company has grown to more than 1.5 million users worldwide. Immersed is also developing Visor, a lightweight headset designed specifically for professional productivity, positioning the company at the intersection of remote work, extended reality (XR), and next-generation computing.

Miso Robotics

Robotics and automation are becoming increasingly important tools for businesses facing labor shortages and rising operating costs.Miso Robotics develops AI-powered kitchen technology that is already being deployed in restaurant environments, with products designed to help operators improve efficiency and streamline operations. As artificial intelligence expands beyond software and into real-world applications, the company is positioning itself at the intersection of robotics, automation and the future of food service.

Vinovest 

Fine wine and rare whiskey have historically moved independently of the stock market, making them a compelling alternative asset.Vinovest manages authenticated, insured portfolios of investment-grade wine and whiskey starting at $5,000 — sourcing, storage, and insurance all handled for you.

FarmTogether

Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors,FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.

EquityMultiple 

For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process. 

Fundrise

Private real estate and private credit can add income and stability to a stock-heavy portfolio.Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.

American Hartford Gold

American Hartford Gold is a precious metals dealer that helps clients buy physical gold and silver coins and bars, either for direct delivery or within self-directed precious metals IRAs. The company’s services include gold and silver IRAs, IRA rollovers, and home delivery of bullion, giving investors a way to use tangible metals to diversify portfolios and seek protection against inflation and market volatility.

Mode Mobile

Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day. Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte’s fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.

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This article Rich, Young Investors Are Losing Faith In The Stock Market To Deliver ‘Above Average Returns’ — Here’s Where They’re Putting Their Money Instead originally appeared on Benzinga.com

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