Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTKit PulliamSat, July 25, 2026 at 1:00 PM GMT+2 5 min readGaudiLab/EnvatoSome Gen Z investors have given up on building wealth the old-fashioned way. They're going gambling instead."When you hit a jackpot or whatever they call it there, that's probably what it feels like, said Preston Coots to Bloomberg, talking about how it felt when his first investment in a microcap stock paid off. "I feel like a genius. I just created money out of nothing."Must ReadThe 25-year-old has continued to invest in high-volatility assets, such as penny stocks and crypto, in the six years since his first big bet. He's seen around a 30% return in those six years — significantly less than he would have made if he invested in the S&P 500.He's also wiped out completely multiple times.Coots isn't the only Gen Z investing this way. Over 70% of Gen Z investors have crypto take up more than a third of their portfolio, according to the World Economic Forum. According to the CFA Institute, they're also less likely to invest in mutual funds than millennial or Gen X investors.Why are Gen Z investors so interested in high-risk, high-payoff investments? And is that strategy working out for them?Some Gen Z investors see traditional wealth building as too slow — they're gambling on 'much higher returns' from volatile betsThe U.S. is headed toward an increasingly K-shaped economy. Wealth inequality has increased over the past several decades; according to the Congressional Budget Office, the share of wealth held by both the top 10% of the US has grown by 4% since 1989, up to 60% total. In comparison, the bottom half only holds 6% of total wealth.To make matters worse, cost of living has grown increasingly unaffordable. According to Brookings, almost half of U.S. households don't earn enough to make ends meet — a number that's gotten significantly worse since the COVID-19 pandemic.This has left some Gen Z investors feeling like traditional methods of building wealth won't let them meet their financial goals."With how expensive life is, it is difficult for people to accomplish the goals that they want to accomplish," says Ish Lukhey, a 23-year-old investor, when speaking to Bloomberg. "You used to be able to with just one high or medium-to-high income."Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info