No doubt attributable, at least in part, to the recent market recovery, investors risk tolerance appears to be increasing.
- Gen Y, the youngest investors appear to be more conservative in their approach than their Gen X peers. In fact, the risk allocation of Gen Y investors largely mirrors that of Gen Xers in 2011. This caution among twenty-somethings is understandable, considering that the bulk of their limited investing experience has occurred since the 2008 market meltdown.
- Gen X investorshave shifted their asset allocation to accept more risk and increase their return potential in 2012.
- Boomers and investors in the Silent Generationreport a more risk-averse profile overall. However, each cohort has shifted a significant portion of their assets from low-risk to moderate-risk investments over the past year — a welcome sign for advisors and investment providers alike, who may benefit from money moving off the sidelines.
This information was taken from the Cogent Research Investor Brandscape® report, which is based on a representative survey of over 4,000 affluent investors within the United States. It is the leading industry benchmark for brand preference and product usage among affluent investors and has been tracking the attitudes and behaviors of affluent investors since 2006.