Richer and more numerous: wealthy individuals are doing well, according to the World Wealth Report 2024 of the Capgemini Research Institute dedicated to high-net-worth-individuals. This term refers to individuals with financial assets of at least one million dollars. Their number grew by 5.1% in 2023, reaching 22.8 million people worldwide, against the backdrop of an improvement in the economic situation and financial markets.
The number of millionaires has increased the most in the United States, with an increase of more than 7%. In total, these wealthy households have a combined fortune of $86.8 trillion, up 4.7% over one year. This rebound, after a difficult 2022, is accompanied by a change in perspective in their investments. While wealthy investors had started last year with a goal of security and capital preservation, they are now more daring.
This translates into a lower proportion of cash in their portfolios, while liquidity had reached a high in early 2023. The world’s millionaires are also betting on bonds. “Investors expect inflation to decline further in 2024, while interest rates remain high, making bonds an attractive asset class,” the institute explains. On the other hand, part of the equity allocation has been transferred to alternative investments, such as private equity, raw materials or even digital assets.