A new Charles Schwab survey shows American investors are moving beyond traditional stock-and-bond portfolios.
- 66% of investors now include alternative assets like crypto, private equity, and real estate.
- 42% say the classic 60/40 portfolio is outdated.
- 52% are taking more short-term trading risks, while 68% report being more patient than when they started.
- Among younger investors, 62% of Gen Z and 72% of millennials say they have grown more patient over time.
Experts point to low bond yields, market volatility, and shifting stock-bond correlations as reasons for the shift. Alternatives provide less correlated returns, smoother volatility, and unique opportunities, according to Fundviews Capital’s Gregory Poapst.
Charles Schwab’s Jonathan Craig said, “With today’s platforms, tools, and resources, investors can diversify and personalize portfolios like never before.”
The trend is strongest among younger and wealthier investors: nearly 75% of wealthy Americans under 43 doubt traditional stock-bond portfolios can deliver above-average returns, with 93% planning to increase allocations to alternatives.
