August 2, 2021

2014, an explosive year for millionaires

Posted on Jan 19, 2014 at 2:17 PM

There are many ways to become a millionaire. Win the Euromillion, like this Frenchman who has just pocketed 65 million euros. Find a winning lottery ticket on the street like this American gardener after Hurricane Sandy hit New York. Make a career in sport, cinema or song. Work in Finance or even create a business and see it prosper, especially on the stock market. After a good 2013 stock market year, a study by the company WealthInsight for Spear magazine, in fact predicts an explosion in the number of millionaires this year. Just a number: their population should jump by nearly 500,000 in the United States alone!

The massive injections of the FED ultimately benefit the rich

According to the 2013 World Wealth Report by Cap Gemini and Knight Frank, last year there were 12.5 million people in the world with spare capital, in other words money ready to be invested at any time, of more than 1 million dollar. They are called the High Net Worth Individuals (HNWI). This is 46% more than in 2008, the year of Lehman Brothers’ bankruptcy. The American, Japanese or European partly explains the proliferation of millionaires. But the policy of massive injection of liquidity on the part of the American or Japanese central banks also had a considerable impact on the enrichment of the richest. “ By borrowing heavily at a rate close to zero since 2008, states and banks have created a considerable money supply. In a market economy, this capital feeds en masse and as a last resort the already considerable fortunes of Ultra High Net Worth Individuals (who hold more than $ 30 million available) and to a lesser extent that of HNWIs., ”Explains Thibault de Saint-Vincent, head of the prestige real estate group Barnes. ” In London, Paris, New York, Miami or Geneva, we have several hundred clients with key positions in the world’s top 500 companies, such as Apple, Microsoft, Coca Cola, Samsung, LVMH Richemont etc., who remain the main beneficiaries of this monetary creation ”, Thanks to household consumption and in particular emerging executives.

Indonesia, India and Nigeria, a new millionaire factory

The United States will create more than 1,360 millionaires a day

Developed countries are expected to see further growth in the number of millionaires this year according to a WealthInsight study for Spear’s magazine In the United States, their number could increase by 9.5% to 496,950 millionaires more than in 2013 (they were 5,231 million at the end of last December), or more than 1,360 per day. Behind, in full economic recovery especially in the City, Great Britain should see the emergence of 44,500 HNWI (+ 6.6%) ahead of Canada with 18,990 new millionaires (+ 4.5%) and Germany 51,720 new wealthy (+ 3.9%). The policy of economic recovery and the fight against deflation in Japan should also bear fruit (+ 2.1% to 45,510). France in this context is also progressing, but less quickly: + 2% with 11,100 millionaires more, four times less than the United Kingdom and five times less than Germany. According to calculations by WealthInsight, France still remains the 7th world power in terms of HNWI.

India champion of the BRICS

But growth promises to be much stronger in emerging countries. The BRICS (Brazil, Russia, India and China) are still showing strong growth, despite the perceptible slowdown, particularly in Brazil and to a lesser extent in China. India is expected to welcome 42,920 more millionaires (+ 17.1%) and Brazil an additional 17,290 (+ 8.9%). China, which had 1.279 million millionaires at the end of 2013, could “manufacture” 101,100 more this year (+ 7.9%).

But 2014 will also see the rise of the MINT countries (Mexico, Indonesia, Nigeria and Turkey). Indonesia first. The country is starting from afar with 37,000 millionaires at the end of 2013, but the WealthInsight survey anticipates a jump of 22.6%. Ouliana Vlasova, its analyst, notes that Indonesia benefits ” its proximity to the world’s second-largest economy, China. Due to the growing needs of the Chinese population for raw materials, Indonesia is well placed, for example, in coal. And this commodity sector will result in a record number of multimillionaires (Ultra HNWIs), which represent 37% of the total! But the rich Chinese also see Indonesia as an ideal country to invest.. ” The country has 25 billionaires in the list of Forbes which has more than 1,400, including the brothers Budi and Michael Hartono (more than $ 16 billion between them) who made their fortune in tobacco and banking. China’s appetite for commodities also benefits Nigeria’s Aliko Dangote ($ 16 billion in fortune) and Mike Adenuga ($ 4.7 billion) who “ also benefits from a young population which should support future economic growth “. Despite its economic difficulties, despite the historic fall of its currency, Turkey was also to see the number of its great fortunes increase.

Mittal’s India to overtake Ferrari’s Italy

India is asserting itself above all as the rising power. With a population of nearly 300,000 millionaires expected at the end of 2014, it will overtake Italy and get closer to Canada. ” While in the past, the country’s strong growth has been driven by investment and consumption », note Ouliana Vlasova, « the Indian government has taken several initiatives to stimulate general economic growth, through infrastructure development, reform of the energy industry or investments in telecommunications and the Internet. Such measures had facilitated the rise in the number of millionaires in developed countries. What is interesting is that more and more members of the Indian diaspora are starting to invest in India while the millionaires living there tend to favor micro-credit, health or social assistance allowing development. future“. India already has 55 billionaires in the Forbes list, including Mukesh Ambani who is in 22nd place ($ 21 billion in gas, oil) ahead of Lakshmi Mittal, CEO of Arcelor (41st worldwide with 16 billion at the end of October 2013).

Inequality and Corruption: Challenges for MINTs

According to Oliver Williams, consultant for WealthInsight, “ there is a new wealthy class being born in the MINT countries (Mexico, India, Nigeria and Turkey), and which is growing very rapidly. This enormous wealth in the making in these countries is reminiscent of the BRICS if ten or fifteen years ago. The only difference is that the new Turkish, Mexican, Nigerian or Indonesian millionaires are much younger.. »Oliver Williams who also wonders about the challenges linked to these nouveau riche. ” Some countries, such as Nigeria, are experiencing a strong spread of poverty concomitantly with the increase in the number of millionaires. Large inequalities, one of the characteristics of the BRICS could well be shared by the MINTs if corruption is not controlled and if the philanthropy of the richest is not encouraged

WealthInsight estimates

WealthInsight is a research company that works on building wealth in 200 countries. Its teams carry out analyzes on the world of HNWIs and produce studies for companies looking for opportunities with this wealthy clientele. His study on the expected increase in the number of millionaires in 2014 is of course only a projection, but analysts have produced this model from the WeallthInsight millionaire database coupled with numerous statistics in these regions.