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Warren Buffett, Elon Musk and Jeff Bezos are among the wealthiest Americans who’ve ever lived. The majority of their wealth is in stocks. But when it comes to investing in the stock market, today’s rich young Americans have not been following in their footsteps.

Gen Z and millennials appear to have a preference for alternative investments that avoid the shaky stock market, which could prove to be a smart strategy during wartime.

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According to a survey from Bank of America, individuals aged 21 to 43 with at least $3 million in assets only have 28% of their portfolio invested in stocks — compared to 55% for wealthy investors aged above 43 (1).

The younger set may be on to something. The S&P 500 is down by 3.39% since the start of 2026 (2), while the tech-heavy Nasdaq Composite dropped by 5.41% in the first quarter (3).

And according to CNBC’s Jim Cramer, the market probably won’t bounce back anytime soon (4).

“We know the war is bad for stocks,” he said. “The economic impact is global.”

With this type of market volatility, it’s no surprise that most rich young Americans (93%) say they plan to allocate more of their portfolio to alternatives in the next few years. Not only that, but nearly three-quarters (72%) believe it’s no longer possible to achieve above-average investment returns by investing solely in traditional stocks and bonds.

Some alternative assets are capturing the interest of these young millionaires more than others.

The Bank of America survey revealed that among wealthy young investors, 45% own gold as a physical asset, and another 45% are interested in holding it.

Historically, gold has served as a hedge against inflation and market volatility. Many investors turn to “safe haven” assets like gold during periods of economic and geopolitical instability to preserve their wealth.

Today, amid fears of recession driven by the war in Iran, trade policy uncertainty due to tariffs and concerns over an AI-driven tech bubble, gold may indeed be seen as a safer place to invest.

And the enthusiasm of investors has propelled the price of gold to record levels over the past year, with the precious metal reaching historic highs of $5,602 per ounce in January (5).

There are many gold assets to choose from, including gold bars, coins and gold IRAs.

If you’re interested in investing in gold through an avenue that also provides significant tax advantages, a gold IRA through Priority Gold might fit your needs.

Since gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, they offer the tax advantages of an IRA alongside the protective benefits of investing in gold — making it an attractive option for those looking to hedge their retirement funds during wartime turbulence.

Download your free information guide today to find out how to get up to $10,000 in free silver on qualifying purchases.

Read More: I’m almost 50 years old and don’t have retirement savings. Is it too late?

Real estate has long been considered a solid portfolio hedge, as rent and property values tend to increase with inflation. It’s no surprise that high-net-worth individuals — regardless of their age — see opportunity in this asset.

In the Bank of America survey, 31% of younger people said real estate presents the greatest opportunity for growth. Federal Reserve data also shows that the top 1% of Americans hold over $6 trillion in real estate assets (6).

But you don’t have to be ultrawealthy to tap into the residential real estate market.

If you’re interested in the long-term earning potential of short-term stays, you can get into this market for a mere $100 minimum. Real estate platform Arrived offers you access to shares of SEC-qualified investments in rental homes and vacation rentals.

Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allow accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part.

View their full list of vetted properties, selected for their income-generating and appreciation potential, to start investing today.

With a solid real estate strategy in place, many rich young Americans are also turning to digital assets to grow their portfolio.

Investors used to be skeptical about cryptocurrency, perhaps due to its speculative and highly volatile nature. But it has now entered the mainstream — according to Charles Schwab’s 2025 Modern Wealth Survey, 41% of American investors now consider crypto a good investment (7).

And in a 2026 survey by Security.org, 53% of crypto owners reported net gains over time, while just 21% have experienced net losses (8).

So it’s no surprise that rich young Americans are fond of this asset class. In the Bank of America survey, 28% of younger people said crypto offers the greatest opportunities for growth, while only 4% of the older group agreed.

The rich young Americans surveyed also allocated 14% of their portfolio to crypto, compared to just 1% of the older generation.

Of course, this asset class isn’t reserved for the ultra-rich.

If you’re looking to diversify beyond traditional stocks and ETFs, Robinhood Crypto lets you buy and sell cryptocurrencies with as little as $1.

With some of the lowest trading costs on average in the U.S., you could end up with up to 2.7% more crypto compared to other platforms.

Robinhood Crypto makes it easy to make investing a habit with recurring buys on a fixed schedule, while giving you access to all your favorite coins — from Bitcoin and Ethereum to Solana, Dogecoin, XRP and more.

You can also transfer crypto securely to other wallets, set custom price alerts, track market trends, and manage your portfolio all in one place.

Robinhood ensures the security of your cryptocurrency is a top priority, with the majority of coins held in offline cold storage. Robinhood also carries crime insurance against theft and cyber breaches, and 24/7 customer support is available if you need help.

While rich young Americans tend to prioritize their alternative investment strategy around crypto, real estate and gold — there are additional asset classes worth considering.

One such asset has posted positive returns over the last 20 years, highlighting strong long-term investment potential. And with its moderate relationship with traditional markets, this alternative investment could help protect against inflation, especially amid recent economic uncertainty surrounding the war.

It’s no surprise this asset has long been favored by the ultra-wealthy as a resilient and lucrative addition to their portfolios. With an estimated value of over $2.5 trillion — projected to reach nearly $3.5 trillion by 2030 — it represents a massive asset class, according to Deloitte (9).

You might be surprised to find out this asset is fine art.

According to the Bank of America survey, 83% of wealthy millennials and Gen Z have invested — or are interested in investing — in this creative asset class. And according to a 2025 survey by Art Basel and UBS, high-net-worth individuals are allocating about 20% of their wealth to art (10).

Fortunately, you don’t need to purchase a painting for millions to benefit from this asset.

With Masterworks, you can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires a long-term hold, it offers unique portfolio diversification.

Masterworks has sold 27 artworks so far, yielding net annualized returns like 14.6%, 17.6% and 17.8%.*

They recently acquired a work by Barbara Peyton and offered investment at $1.16M. Just 17 days later, Masterworks accepted a buyer's offer of $1.5M — netting 22.9% back to investors.

Moneywise readers can get priority access to diversify with art: Skip the waitlist here.

*Past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd.

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Bank of America (1); Yahoo Finance (2), (3); CNBC (4); APMEX (5); Federal Reserve Bank of St. Louis (6); Charles Schwab (7); Security.org (8); Deloitte (9); Art Basel (10)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.