According to the CNBC Millionaire Survey, most millennial millionaires are optimistic about the U.S. economic situation. Nearly three quarters of them expect improvements by 2022.
The survey revealed that 37% of millionaires believe inflation is the greatest threat to the economy in the next 12 months.
“This survey is the first time millionaires have stated that inflation is their top threat,” said Robert Frank, CNBC’s wealth editor. 1 threat — both to the stock market, the economy and their personal net worth,” said Robert Frank, CNBC’s wealth editor, unveiling the findings at the Financial Advisor Summit.
However, the millennial millionaires were more optimistic than their older counterparts.
The survey shows that the majority of respondents believe inflation will last six months to one years, while older generations expect higher prices to linger for one to two more years.
More than half feel confident in the Federal Reserve’s ability manage inflation.
Frank said that the millennial millionaires are not only different types of investors, but a completely different type of investor.
Survey results show that while nearly 70% of millionaires have a financial planner, this number rises to almost 90% in the case of millennials.
Inflation has made it more common for younger millionaires to invest in fixed-income assets and stocks, as well as having less cash.
Frank stated, “They’re active on the market, and they’re buying more stocks at twice the rate that baby boomers,” Frank added. “And that is again reflects that optimism.”
He explained that millennials have a longer time frame for investing, which may make them more aggressive.
However, most millionaires have not reduced their spending in the face of rising inflation. However, millennials are more likely to have changed their lifestyles. 48% delayed buying a car, 44% put off buying homes, and 62% give less to charity.