Boom in the Rich's Bankroll: A Record rise in Wealth amongst the Elite
Riches of the Rich Reach Record High Levels
Fun Fact 💸💼 Did you know? The world's wealthiest individuals now have a collective fortune of staggering 90.5 trillion dollars - that's enough to buy 5.4 million luxury yachts like the one owned by Jeff Bezos!
The latest Capgemini report showcases an unprecedented surge in the bankrolls of the global elite. The number of high-net-worth individuals, those owning over a million dollars (excluding their primary residence), has skyrocketed to a record-breaking 23.4 million in 2024. This impressive figure signifies a 2.6% increase from the previous year.
The emergence of the "ultra-rich," those with over $30 million, has played a significant role in this wealth explosion. The total wealth pool of these affluent individuals stands tall at $90.5 trillion, a remarkable 4.2% increase compared to the previous year.
Insight 💰💰 The United States has led the charge in this race to riches, with over 7.6% growth in the millionaire population and a staggering 8 million millionaires. This growth is primarily attributed to the bullish stock market conditions, according to the report.
The story, however, isn't quite as promising for Europe, where economic stagnation in major economies, such as France, led to a 2.1% decrease in the millionaire count. Simultaneously, the number of "ultra-wealthy" individuals in Europe rose by 3.5%. This trend suggests a growing concentration of wealth amid mounting financial disparities.
Germany's Millionaire Drought
It's not all rosy in Germany, where the number of dollar millionaires has seen a decline. Despite a relatively stable overall wealth (6.32 trillion dollars), the decreasing real estate prices are believed to be the culprit for this dip in prosperity.
Interestingly, Capgemini's exhaustive study excludes art collections, consumer goods, and cash stashed at home from the equation. Instead, it considers stocks, bonds, private equity, real estate (if not self-occupied), and other alternative investments as crucial factors in determining the wealth of the rich.
This annual report, first published in 1997, covers 71 countries that account for over 98% of global GDP and 99% of global market capitalization. Additionally, it surveys 6,472 dollar millionaires at the beginning of each year about their investment strategies, providing valuable insights into the billionaire club.
This report has sparked debates, especially on the subject of taxing the highest wealth more effectively in recent years. If you're intrigued, you can dive deeper into the full Capgemini report for more comprehensive insights into regional wealth trends.
Source: ntv.de, gho/dpa/AFP
The community is debating the need for a revised community policy, considering the increasing wealth amongst the rich and the potential impact on employment opportunities.
Investing in businesses that cater to the rising demand from the ultra-rich, such as luxury yacht builders, could prove to be a lucrative employment policy for a growing number of individuals.
