Investing patterns have differed dramatically across age groups during the crisis, according to JP Morgan, with older investors backing gold while young ones turn to Bitcoin.
Millennials are also targeting stocks while their parents dump equities and turn to bonds, according to JP Morgan strategist Nikolaos Panigirtzoglou. In a note written on 4 August, the strategist remarked: “The older cohorts continued to deploy their excess liquidity into bond funds, the buying of which remained strong during both June and July.”
Both gold and Bitcoin ETFs have experienced strong inflow this year, hence the rally for the gold price in particular. But interest in Bitcoin is clearly on the up too, with the futures market on the Chicago Mercantile Exchange (CME), one of the few regulated Bitcoin futures exchanges, at a record high with $830 million-worth of contracts in place.