Millionaires Galore: Global Wealth Boom Unleashed by Searing Markets
Record-breaking surge in global wealth: More individuals than ever boast millionaire status, reaching new heights. - An unprecedented number of millionaires across the globe has emerged.
Here's the lowdown: the world's millionaires are popping up like mushrooms after a summer rain, all thanks to a global stock market frenzy! You heard it right—swap your slippers for dancing shoes, 'cause an estimated 23.4 million folks, that's 2.6% more than in 2023, are now first-class millionaires, boasting investable assets of $1 million or more[1]. This number is the highest we've seen since 1997, according to the consulting firm, Capgemini[1].
But, hold on, 'cause there's more dough where that came from! The mega-rich also touched new heights, with a staggering $90.5 trillion (€79.3 trillion) in their pot in 2024, representing a 4.2% increase from the previous year[1]. As always, the big kahuna of the wealth increase stalked the U.S., taking more than its fair share.
Germany's Millionaire Meltdown
Germany didn't escape the millionaire madness unscathed, losing a smidgen of its high-net-worth individuals (HNWIs) in '24. Although it stays put in third place in the global HNWI ranking, the number of millionaires dropped by around 40,000 to 1.605 million. Why? Blame plummeting real estate prices[1]. Surprisingly, Germany's total wealth stayed relatively steady at $6.32 trillion[1].
Four Countries Rule the Millionaire Roost
The eating-champ of the HNWI rankings, the USA, takes the cake by a landslide with 7.993 million millionaires (up from 7.431 million in 2023)[1]. Japan is hot on its heels with 3.990 million HNWIs, bumping China a notch down to third[1]. Did you know that these four powerhouses together account for a mind-boggling 64.5% of the world's millionaires[1]?
Capgemini's Annual Wealth Barometer, a tradition since '97, sets its sights on stocks, bonds, alternative investments such as private equity, cash, and non-owner-occupied real estate, ignoring art collections and consumer goods like cars and jewelry[1]. The report tracks 71 countries that account for over 98% of the global GDP and 99% of the global market capitalization[1]. In early January, Capgemini surveys a whopping 6,472 HNWIs to get a pulse on their investment strategies[1].
[1] Capgemini[2] Wealth-X[3] Knight Frank[4] Credit Suisse
- Despite the global wealth surge, it is worth noting that certain community policies like reevaluating real estate taxes could potentially stimulate the growth of vocational training programs, as more resources become available within communities to invest in education and skill development for their residents.
- As the number of millionaires continues to increase and business flourishes, it's crucial for these millionaires to consider opportunities in vocational training as a viable form of investing, preserving, and growing their wealth while simultaneously contributing to the betterment of their communities.
