In fact, they have been gradually losing interest?—?and trust?—?in equities for quite some time. According to Goldman Sachs, U.S. households have $900 billion less invested in stocks today than they did in 2007?—?despite a 9 year bull market where the DJIA saw gains in excess of 300% from its 2009 lows.
And millennials, in particular, have a strong disdain for equities. According to a recent survey by Blockchain Capital, more than 1 in 4 millennials prefer bitcoin to stocks, and 27% of millennials think that bitcoin is more trustworthy than big banks.
Let that sink in for a second. In spite of all the negative press about bitcoin, including the fake news reports of bitcoin being ridden with fraud, millennials still believe it to be more trustworthy than long established financial institutions!
This brings me to the next reason why crypto will displace equities: because millennials say so.
3. Reason number 3: Because millennials say so
Like it or not, the future of the capital markets lie with millennials and gen-zers, for they are on the cusp of inheriting an estimated $30 trillion?—?the current size of the entire U.S. equity market. It is impossible to accurately predict investing trends without firmly understanding how budding generations see the world.
And, trust me, their views are diametrically different from their predecessors.
Millennials are a generation that would prefer getting a root canal than visiting a bank. Does anyone realistically believe that this bank-averse generation is suddenly going to start welcoming the financial establishment into their lives? Sorry, but I do not foresee any “hug a financial advisor” campaigns winning the hearts and minds of millennials. Nor do I expect equities to be removed from “the millennial shit list” anytime soon.
In fact, there is only one thing that millennials despise even more than banks?—?and that is owning stuff.
4. Reason number 4: Because sharing is the new black