The Commercial Real Estate Alpha Site

The 60/40 portfolio, long the default for balanced investing, is rapidly falling out of favor with younger, wealthier investors. Nearly three-quarters of high-net-worth millennials and Gen Zers believe the traditional stock-bond mix won’t deliver above-average returns, according to Bank of America’s latest wealth study.

Instead, they’re embracing private credit, venture capital, structured notes, and direct deals in search of greater upside potential and diversification. The study suggests that the number of retail clients holding alternatives has more than doubled since 2020, with Bank of America specifically now adding roughly 50 new funds to its platform annually to meet demand.

This isn’t just stylistic, it’s structural. Younger investors often have longer time horizons, higher risk tolerance, and more access to private markets than prior generations. Digital platforms and new advisory models are making once-exclusive strategies more accessible, accelerating the shift away from conventional portfolio theory.

For advisors and asset managers, the message is clear: catering to the next generation of wealth means moving beyond the 60/40 playbook and embracing a more customized, often illiquid, approach to pursuing growth.