Soaring Dollar Millionaire Numbers: What's the Deal? 🚀
Increased number of millionaires globally in comparison to previous periods - Unprecedented surge in number of millionaires worldwide.
Heads up! The number of dollar millionaires around the globe hit an all-time high in 2024, thanks mainly to a booming stock market. A whopping 23.4 million individuals boasted investable assets of at least a million bucks, up from 2.6% in 2023, according to a report by consulting firm Capgemini.
Here's a lowdown on what's driving this wealth explosion:
- Stock Market Thrill ride: The U.S. stock market rode a wave of optimism around artificial intelligence stocks, leading to a remarkable growth spurt that swelled the ranks of high-net-worth individuals in the U.S. and other regions like Asia.
- Interest Rate Party: The interest rate environment in 2024 was nothing short of a party, particularly in North America. These favorable rates boosted investment returns and fueled more millionaires.
- Economic Growth Boom: Key regions like the U.S., Japan, and India saw impressive economic growth, which played a significant role in the rise of the high-net-worth population. The U.S. welcomed over 562,000 new millionaires, while Japan and India each witnessed a 5.6% surge in their HNW populations.
However, not all regions are enjoying the same prosperity. Europe, for instance, experienced a dip due to economic stagnation, with a drop of more than 2% in its millionaire count.
On the global stage, the U.S. leads the pack by a mile with 7.993 million millionaires, up from 7.431 million in 2023. Japan and Asia aren't far behind, with Japan hosting 3.990 million millionaires, up from 3.777 million in 2023. The U.S., Japan, and these Asian countries account for a colossal 64.5% of the world's millionaire population.
Snack-sized Enrichment Insights:- The report by Capgemini covers 71 countries, accounting for more than 98% of global GDP and 99% of global market capitalization.- Around 6,472 millionaires were surveyed at the beginning of 2024, shedding light on investment strategies.- The report includes data on stocks, bonds, alternative investments like private equity, cash, and real estate (excluding personal use), but excludes assets like art collections and consumer goods such as cars and jewelry.
Vocational training, as a part of community policy, could prove beneficial for individuals seeking to invest wisely and increase their personal-finance, especially considering the growing number of millionaires due to a thriving stock market. In fact, investing in vocational training might be an advantageous method for aspiring entrepreneurs to establish themselves in business.
