Research has shown that millennials are cautious about traditional investments such as equities. A Bankrate survey found that only 23% of millennials see the stock market as the best place to invest their savings over the next decade. Instead, a significant portion of this generation prefers cash as a long-term investment choice, a sentiment not shared to the same extent by Gen Xers and Baby Boomers. When it comes to investment knowledge, 42% of millennials consider themselves experts in the field. Only 23% of baby boomers can say the same (Raconteur 2019). 

We also note that cryptocurrencies are perceived as an attractive asset class for many millennials. A study by Bitget (2023) indicates that 46% of millennials own cryptos, a higher proportion than Baby Boomers, Gen Xand Gen Z . One characteristic that separates millennials from Gen X is their penchant for short-term goals and near-instant return on investment. So maintaining a long-term perspective on investment can be difficult for this generation. A dimension that takes on even greater significance with Generation Z. This age group prioritizes lifestyle spending over savings goals. Some 61% of Generation Z consumers have bought at least one item using the "Buy now, pay later" service. 
Baby boomers, currently aged between 59 and 77, are mostly retired or close to retirement age. With life expectancy increasing, they face the prospect of a retirement that could last 20 years or more. This generation has strong purchasing power and controls more than 50% of all wealth in the United States. As a result, their investment decisions and preferences have a considerable impact on the financial markets and the economy.

Their long-term approach aims to preserve their purchasing power while protecting their capital against market downturns. Boomers are generally attracted to balanced portfolios and income-generating investments, such as REITs and high-dividend stocks. 
Boomers' investment preferences favour equity markets. According to a Gallup survey conducted in 2023, nearly 66% of American adults aged 65 and over hold individual stocks, mutual funds or retirement savings. A significant proportion of baby-boomer investors (around 10%) are invested entirely in equities, defying the rules of financial prudence that recommend risk diversification by including other asset classes such as bonds. Many baby boomers abandoned the idea of diversification because the stock market seemed to be the only place to get attractive returns when interest rates were close to zero. 

As interest rates rise, the investment preferences of savers nearing retirement may change. Some baby-boomers may consider allocating part of their savings to less volatile investment vehicles. There is also a risk that retiring baby boomers will convert a significant proportion of their savings into cash, which could reduce overall demand for risky investments such as equities.

Baby boomers are also adept at using new technologies. Around two-thirds of baby boomers aged 65 and over are now active online. A survey by Australian investment platform Moomoo found that 47% of investors aged 60 and over are more likely to use online platforms than traditional advisers and brokers.

Finally, when it comes to AI, 67% of millennials believe that recommendations made by artificial intelligence are an integral part of any investment platform, while Gen Xers and baby boomers are more hesitant; only 30% believe that computerized recommendations are essential.

A notable difference in investment behaviour becomes apparent when millennials are compared with Generation X and Baby Boomers. Around 60% of the millennials surveyed said they had invested at least a quarter of their savings in environmental, social and governance (ESG) investments. By contrast, only 49% of Generation Xers and 45% of Baby Boomers had such a proportion of ESG investments. For millennials, the aim is to leave a positive impact through their investments. Boomers and Gen-Xers aim to align their financial decisions with their values (Natixis global survey, 2021).
Younger investors are more willing to allocate funds to environmental and social objectives, even if the cost is higher.

A 2022 Stanford investor survey found that 83% of respondents believe their personal views should be taken into account when mutual fund managers vote on environmental or social issues.  Furthermore, when it comes to accepting potential losses to promote corporate environmental practices, younger investors in their twenties and thirties are prepared to lose between 6% and 10% of their investments, while baby boomers are more reluctant to take any losses.