The super-rich are getting richer
During less affluent individuals traditionally set their investments in risk-averse asset classes, while the Super Rich can generate full capital growth at the stock market. Correspondingly, their wealth grows faster.
In Germany, there are approximately 3300 Super Rich, who collectively own over 2.1 trillion US-Dollars and represent 23% of the total financial wealth in the country. According to the Global Wealth Report by Boston Consulting Group (BCG), they will continue to get richer - in comparison to other wealth groups. The wealth of the Super Rich (over 100 million US-Dollars) grew by more than ten percent last year. Wealth between one and five million dollars grew by over five percent, while wealth below 250,000 dollars only grew by 1.5 percent.
"Very affluent investors have a higher share of their wealth in the capital market and in high-yield asset classes like private equity," said BCG Partner Akin Soysal to "Spiegel". "Less affluent investors traditionally set their investments in risk-averse asset classes like savings accounts, cash, or insurances - at the expense of returns." The wealth distribution in Germany is therefore "above-average unequal." According to BCG calculations, this trend will further intensify.
As for the number of dollar millionaires, the world is seeing more and more of them. According to a study by the consulting firm Capgemini, the number of people who have investable assets of at least one million dollars worldwide increased by 5.1 percent to an estimated 22.8 million. "The increase in stock market prices reflects itself in the development of the affluent," summarized Capgemini expert Klaus-Georg Meyer.
Capgemini considers assets such as stocks, interest-bearing securities, alternative investments like private equity, cash, and real estate, as long as they are not used for personal consumption, in its annual "World Wealth Report" since 1997. Collectibles or consumer goods are not taken into account. The analysis covers 71 countries, to which over 98% of global Gross National Income and 99% of global stock market capitalization falls. In addition, 3119 dollar millionaires were surveyed about their investment strategies at the beginning of the current year.
Due to their substantial wealth, the Super Rich often invest heavily in high-yield asset classes like the stock market and private equity, contributing to their rapid economic growth. Consequently, the wealth distribution in countries like Germany becomes increasingly unequal, with less affluent individuals relying on risk-averse assets such as savings accounts and insurance policies with lower returns.
