US to lead the way in global ‘wealth explosion’
Despite wealth levels around the world soaring, the US will continue to dominate as the base for the super-rich. In 2016, there will be 19.5 million households with aggregate wealth in excess of $1m in the country, and 5.5 million households with aggregate wealth in excess of $3m.
UK to play host to a million ‘super millionaires’ by 2016
Within a decade, the number of households with aggregate wealth in excess of $3m is forecast to exceed one million in the UK for the first time. The UK will also have the highest proportion of households with aggregate wealth in excess of $1m of any G7 country. 26 per cent of households will reach this threshold, compared with 16 per cent in the US, and 22 per cent in Japan. See page 8
Potential of BRIC countries as breeding ground for millionaires is ‘overplayed’
Despite dramatic economic growth within the emerging markets of Brazil, Russia, India and China (BRIC) in recent years, relative weaknesses in infrastructure and the business environment could hold back their development as dominant sources of high net worth households.
The rise of the ‘nearlionaire’ as average per capita wealth soars
The next decade will be marked by a rise in ‘nearlionaires’ – households holding between $500,000 and $1m in aggregate wealth. In the UK, for instance, there will be a 25 per cent increase in this bracket of wealth by 2016, from five million in 2005 to 6.3 million in 2016.
The ‘Grey Dollar’ will define future wealth creation
Demographic change is likely to be an important factor influencing how wealth is created and invested in 2016. Companies that can create and market products and services effectively to older people are likely to enjoy substantial success.
YouTube points the way for future exploitation of ‘gift economy’
The monetisation of non-traditional sources of wealth, such as businesses or services that shun charging fees, is likely to create huge opportunities for wealth creation in the years ahead for those companies that can find ways of harnessing them. The recent sale of YouTube, which was initially designed as a free service for friends to share videos, for $1.65bn demonstrates the potential prize in this section of the economy.
