By Reuters September 28, 2017 | 11:35am | Updated Modal Trigger Shutterstock The number of millionaires in the world rose by nearly 8 percent last year to an all-time high of around 16.5 million people, with record total wealth of $63.5 trillion, according to a report by global consultancy firm Capgemini. The wealth of high net worth individuals — which Capgemini defines as those with investable assets of $1 million or more, excluding the primary residence, collectibles and consumables — rose 8.2 percent on the year in 2016 and is on track to surpass $100 trillion by 2025. Some 1.15 million people became millionaires last year, the report said. The United States, Japan, Germany and China boast the highest numbers and together make up for almost two-thirds of the total. In the United States, their ranks rose to 4.8 million from 4.46 million, while the number of millionaires in China rose to 1.13 million from just over 1 million. The Asia-Pacific, Europe and North America contributed equally to the rise in wealth, with Russia, Brazil and Canada reversing course from declines a year ago, the report showed. Russia, helped by a rebound in its stock market, saw both the number of its millionaires and their wealth grow by about 20 percent. France overtook Britain in the top five in terms of the number of millionaires, helped by a recovery in real estate, while Sweden knocked Singapore — which saw a decline in its equity markets — out of top 25. Surveys on the millionaires’ financial asset holdings show they held 31.1 percent in equities in the second quarter of 2017, compared with 24.8 percent in 2016. Fixed income held steady at 18 percent, while cash grew to 27.3 percent from 23.5 percent. Alternative investments, such as hedge funds, derivatives, foreign currency, commodities and private equity, fell to 9.7 percent from 15.7 percent. The report did not dive into the reasons for the reallocation, but stronger global growth, coupled with hefty liquidity after years of unprecedented stimulus by global central banks, have pushed stock markets around the world to record highs. On the other hand, investors are wary of geopolitical risks, with tensions growing between the United States and North Korea, and are uncertain about the consequences the U.S. Federal Reserve’s exit from unconventional stimulus might have on economies and markets. Millionaires saw a 24.3 percent return on average on investment portfolios overseen by wealth managers. http://nypost.com/2017/09/28/the-number-millionaires-worldwide-is-at-an-all-time-high/
Articles on this subject rarely seem to discuss it, but I sometimes wonder to what extent the growth in the number of millionaires is attributable to the huge worldwide growth in regular national/state lotteries which so regularly give multiple millions as their jackpot prizes. It may not be their intention, but they're certainly a way of "taxing" the many to concentrate wealth in the hands of the few. (Obviously I don't mean "taxing" literally.)
No mention was made of real estate. While they excluded principle residence as a factor they make no mention of a second home or a rental property. In many cities real estate has achieved extreme valuations. For example in the Canadian cities of Toronto and Vancouver the average price of house is well over $1 million. Rental stock is at extreme lows. So it is a simple matter to buy a house, two families living upstairs, one in the basement and the three rents put you in a positive cash flow. Finally, no mention was made of small businesses. Creating a business, and reinvesting the cash back into it has been the hallmark of the "American Dream". From my anecdotal evidence, I know far more wealthy people who come from this lineage, then the world of stocks and money managers.
%% Good question XEla; i dont really have stats on that. I did ask a lotto player, he was in line @ a BP gasoline station, ''ever won anything??'' he said '' no but i have come close !!'' LOL-LOL; said he came close. BUT more , than say seven or 8 years time trend , not likely that any or many lotto ''winners'' are millionaires @ all. Its simply because ''lotto mentality'' does not hardly ever retain riches/wealth.[Source=includes, but not limited to, MILLIONAIRE MIND , book by DR Thomas Stanley.............................................................................................................]
Indeed ... only a minority do (but - to be fair - the ones who lose/spend most/all of it quickly, and end up in some kind of financial trouble within a couple of years are heavily over-reported in the media, so there's plenty of selection bias in play, too). This is my source, which was originally my father's book (I mean that he bought it when it was new, not that he wrote it!), and is doubtless terribly out of date by now, but still interesting.
%% OK +its a matter of public record i gambled in pool halls, for quarters [ $00.25] as a kid. BUT gambling is not trading, not even close to trading or investing.Horse sense is what keeps a horse from betting on a [human ] track meet. And the fact some commercial traders use $00.25 as price levels= does not mean trading is gambling-not even close. I bought MILLIONAIRE MIND book , by Dr Stanley ,slightly used, better buy.
%% Good points, good post ,Deal Maker. FORBES 400[magazine] + Millionaire Mind[ excellent book by Dr T Stanley] both confirm for big money, mostly stocks + real estate+ small businesses. By the way XEla, thanks for the note on your dad -sounds like he maybe like many small stores/gasoline stations in USA,& sells lotto tickets .Of course disagreement is not disrespect , but some confuse the issue. Walls Street Journal likes to confuse business with bets; but then they promote PE way to much+ a 65 day moving average, which is too little to late ,compared to IBD 50 day moving average.{ I do read WSJ, ; IBD is much more helpful + accurate} Its a shame,XEla, the way many in USA fake news /false news report so called ''lotto winners'' + pretend that news.LOL [ BUT never give the odds ;more likely to git hit by lightening, than win lotto]]. Actually Millionaire Mind book had quite a few reasons so few millionaires buy lotto tickets; including the average time spent [wasted] buying lotto tickets......................I just remembered millionaires tend to repair, rather than throw away shoes LOL