Researchers: Private Wealth Continues To Grow

Researchers: Private Wealth Continues To Grow

By Burt Carey

 

Rising stock markets and real estate helped the United States add a half million people to the list of millionaires in 2014, and globally the number of millionaires spiked sharply upward, according to new research released by the Boston Consulting Group this week.

The total number of millionaire households worldwide (those with between $1 million and $20 million of investable assets excluding their primary residence) is now 17 million, up from 15 million in 2013.

Boston Consulting Group, private wealth, where the money is, millionaire households, worldwide, market performanceChina added 1 million new millionaires, the most of any country in 2014. China now has 4 million millionaires, overtaking Japan as the country with the second highest number of millionaires. The BCG report states the U.S. has the most millionaires, 7 million, but a Deloitte study earlier this year put that number at 10.1 million.

If you’re looking to find the country with the highest percentage of millionaires per 1,000 households, you’ll need to look to Switzerland, where 135 out of every 1,000 households holds private wealth greater than $1 million.

“Potentially disruptive forces are everywhere,” said Brent Beardsley, a BCG senior partner and coauthor of the report. “The tightening regulatory climate, a more complex investing environment, highly demanding clients, technological evolution, and other trends are straining traditional models. As the pace and magnitude of change intensifies, wealth managers need to think more strategically.”

Even so, 73 percent of the world’s growth in private wealth – totaling $13 trillion – in 2014 was generated by market performance of existing assets, according to BCG, which has been compiling and reporting on private wealth data for 15 years. Just 27 percent, or $5 trillion, was new wealth created through more traditional business means.

Strong equity market performance in the U.S. was responsible for 78 percent of the growth in 2014. New wealth, which accounted for 22 percent of growth, can be attributed to a moderate 4 percent increase in gross domestic product. Stocks in U.S. markets rose by 9 percent, while bond growth was more modest at 3 percent. In Canada, equities (12 percent) and bonds (11 percent) were also strong gains.

The Asia-Pacific region, excluding Japan, enjoyed tremendous growth, posting a whopping 48 percent increase in equities on existing assets, a 39 percent increase in bonds, and 16 percent growth in cash and deposits. Japan’s growth in 2014 was slowed by a weakened yen despite otherwise strong performance of its Nikkei index.

Global private financial wealth grew by nearly 12 percent in 2014, reaching a total of $164 trillion. The U.S. leads in overall wealth, with $51 trillion. But for the first time, the Asia-Pacific region, excluding Japan, overtook Europe as the world’s second wealthiest region with $47 trillion. With continued growth, especially in the emerging economies of China and India, projected to reach $57 trillion in 2016, the Asia-Pacific region is expected to surpass the United States and will hold one-third of the world’s private wealth by the year 2019.

Overall, the world’s wealthy now hold 41 percent of global wealth, up from 40 percent in 2013.

 

Source:  Sportsmans Lifestyle

Entertainment

Top Ten DVD List for May 30, 2017

  This Week’s DVD Releases by Kam Williams Top Ten DVD List for May 30, 2017   Ghost World https://www.amazon.com/exec/obidos/ASIN/B06VVY471R/ref%3dnosim/thslfofire-20 Logan https://www.amazon.com/exec/obidos/ASIN/B01LTIBWTE/ref%3dnosim/thslfofire-20 Shark Week: Shark 'N' Awe … [Read More its Good for You...]

Books

Rising Star: The Making of Barack Obama

  Rising Star The Making of Barack Obama  by David J. Garrow William Morrow Hardcover, $45.00 1472 pages ISBN: 978-0-06-264183-0 Book Review by Kam Williams “Barack Obama's speech at the 2004 Democratic National Convention instantly catapulted him into the national spotlight and led to his election four years later as America's first … [Read More its Good for You...]

Art

The Day After the Day Of

  The Day After the Day Of by Paul Ilechko   The sky sheds its tears. This morning is the morning of the day after. The day of mourning, the day after the day of.  I beseech the sky to shed tears in order to wash away the tears on my face.   This is the first day of the time after. This is the beginning of a new time, the … [Read More its Good for You...]

Real Estate

Castles in America

  Castles in America by Amy Lignor   Robin Leach and his “Lifestyles of the Rich and Famous” taught us all long ago that we absolutely love to sit and view ridiculous luxury (usually owned by people who inherited all of it and didn’t work a day in their lives). See that? We had to complain about something as we were beguiled by the amount … [Read More its Good for You...]

Lifestyle

Lawyer on a Mission to Preserve the Hard-Fought Right to Vote

  Dee Hunter The “Voting Rights Project” Interview with Kam Williams Lawyer on a Mission to Preserve the Hard-Fought Right to Vote Dee Hunter is the Executive Director of The Civil Rights Center, a Washington, DC-based public advocacy organization dedicated to advancing the public interest in the areas of criminal justice reform and … [Read More its Good for You...]

Outdoors

Blade Sharpening 101

  Blade Sharpening 101   It may sound like a simple process, but when it comes to sharpening your blade – whether it be a pocket knife, survival blade or other, it is important to know all there is regarding knife honing. After all, you need to be sure that the blade is ready whenever you need it. There are a variety of blade steels. … [Read More its Good for You...]

Sports

Prepare for the Perfect Plunge ‘Under the Sea’

    Prepare for the Perfect Plunge ‘Under the Sea’ by Amy Lignor   Two thirds of the world lies under the sea. Hard to believe, isn’t it? Yes, there are massive skyscrapers, big cities to tour, historical landmarks and more up above, but under sea level you will discover hundreds of thousands of different animals and plants. Not … [Read More its Good for You...]

Business

The Hottest Locales for Small Business in the U.S.

  The Hottest Locales for Small Business in the U.S. by Amy Lignor   No, Silicon Valley is not being replaced. However, with the Kauffman Foundation releasing its annual Startup Activity Index last week showing, in detail, trends in U.S. business startups for 2017, it was revealed that California has been booted out of first place. The top spot … [Read More its Good for You...]

Travel

Once Upon a Time Vacations

  Once Upon a Time Vacations by Amy Lignor   Whether you are a lover of history or you simply have the “Beauty & the Beast” obsession – which, according to movie revenue data, millions all over the world are suffering from – just think how amazing it would be to stay in an actual castle. We already know what the beauty would be … [Read More its Good for You...]