(9AM EST – promoted by Nightprowlkitty)
Glad tidings, my fellow emotive and passionate brotherly investors! The new World Wealth Report has been published by Capgemini and Merrill Lynch Wealth Management (pdf, free registration), and it is very, very good news indeed, so let’s cut to the chase: My compassionate transnational brethren of High Net Worth Individuals, we are as rich as ever, and getting richer!
The world’s population of high net worth individuals (HNWIs) grew 17.1% to 10.0 million in 2009, returning to levels last seen in 2007 despite the contraction in world gross domestic product (GDP). Global HNWI wealth similarly recovered, rising 18.9% to US$39.0 trillion, with HNWI wealth in Asia-Pacific and Latin America actually surpassing levels last seen at the end of 2007.
We have swelled the ranks of HNWI and our wealth surged in 2009. Oh, the Blows of Chance, the Shocks of Time, we were hit particularly hard in 2008. We have recouped our losses, while everyone else sucked on contaminated bilge water! Time and time again, I don’t know how we do it, but we do.
It is our nature. We’re the lugals, and lugals don’t lose the lucre.
Now people will complain about “social stratification” and “class warfare,” but we have our own “have and have-not” issues there, between our Ultra-HNWI’s and our millionaires aspiring to be Ultra-HNWI.
Ultra-HNWI Segment Showed Outsized Gains in Ranks and Wealth
Ultra-HNWIs increased their wealth by a striking 21.5% in 2009, far more than the average in the HNWI segment as a whole. This resurgence followed a mammoth 24.0% loss in wealth for Ultra-HNWIs on aggregate in 2008, and was most likely due to a more effective re-allocation of assets. A disproportionate amount of wealth remained concentrated in the hands of Ultra-HNWIs. At the end of 2009, Ultra-HNWIs represented only 0.9% of the global HNWI population, but accounted for 35.5% of global HNWI wealth. That was up slightly from 34.7% in 2008.
The important thing to remember is that a rising tide (or in this case, even the friggin’ the ebb tide) raises our boats. Our yachts can literally levitate on thin air and the howls of misery from the boat-less classes looking around in vain for their life preservers that we “reallocated.”
Now, our recovery is nascent. Demand is worse than sluggish and World GDP is still collapsing. Also, the bail-outs and stimulus money have put all the sovereigns at risk of default, which we can’t let that happen as they are our “tool-boxes” of wealth creation. We need to remind “sovereigns” who is the real plunge protection team (PPT).
Finally, while we should proceed gingerly with respect to deflation, we need to get our passion back! We need to approach our “passion investments” as “investor-collectors:” Luxury collectibles (autos, boats, jets), art, jewelry, gems, and watches, sports investments, things that will retain tangible value over the long-term, and impart a passionate sense of high or ultra-high status by signaling our resource holding potential (RHP). What’s the point if you can’t flaunt it? You’ve got to advertise RHP if you want to keep and grow RHP!
Let’s get some of that devil-may-care sparkle back in our eyes. We deserve it!