Most millennial millionaires are optimistic about the US economy, with nearly three-quarters expecting improvements by the end of 2022, according to the latest CNBC Millionaire Survey.
Inflation concerns are a theme across the poll, with 37% of millionaires saying it’s the biggest risk to the economy over the next 12 months, the results show.
“This is the first time the millionaires in the survey said inflation is their biggest threat — to both the stock market, the economy and their personal wealth,” said Robert Frank, wealth editor at CNBC, revealing the results at the Financial Advisors Summit.
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However, the millennial millionaires surveyed had rosier economic prospects than their older counterparts.
A majority say they expect inflation to last six months to a year, compared to older generations who expect higher costs to last one to two years or more, the survey found.
And more than half are “very confident” in the Federal Reserve’s ability to control inflation.
“Millennial millionaires have not only become different types of investors, they have become a very different type of investor,” Frank said.
Millennial millionaires are ‘active in the market’
While nearly 70% of millionaires have a financial advisor, the percentage jumps to nearly 90% for millennials, the survey shows.
In response to inflation, younger millionaires are more likely to buy stocks and fixed income assets and are less likely to have large amounts of cash.
“They’re active in the market, they’re buying more stocks twice as fast as the baby boomers,” Frank said. “And that again reflects that optimism.”
Of course, millennials have a longer investing timeline, which might fit with a more aggressive approach, he said.
While most millionaires surveyed have not reduced spending in the face of rising inflation, millennials are more likely to have changed their habits. Almost half, 48%, delay buying a new car, 44% postpone buying a home, and 62% donate less to charity.