Wednesday, June 17, 2015

Crisis Hits Latinos millionaires – The Reason

The crisis last year also affected the millionaires of Latin America.

In 2014, 530 were recorded billionaires in Latin America, 11 000 400 less than the previous year, representing a decline of 2.1 percent, according to a report by Capgemini and RBC Wealth Management consultants.

The fortune of Latin Americans also was reduced, though only 0.5 percent, to rise to 7.7 billion.

The number of rich people in the region declined due to falling prices of raw materials which affected the market capitalization of companies in the sector, according to the report.

Globally, the number of millionaires grew like his fortune, driven by new rich Asia-Pacific, North America and Europe.

In 2014, the number of millionaires in the world totaled 14.6 million, 6.7 percent more than in 2013, while his fortune amounted to 56.4 billion dollars, an increase of 7.2 percent in the same period.

The study, conducted in 23 countries, defined as those with high net worth investment assets of at least a million dollars, excluding the first housing and consumer goods.

According to the document, the economic recovery and the strong performance of equity markets have enabled 920 000 individuals around the world to achieve the status of millionaires in 2014.

The number of millionaires in Asia Pacific grew 11 percent, 9 percent in North America and 4.6 percent in Europe, so the study authors believe that before the end of the year East concentrate most of the great fortunes.

The stock market assets focus 27 percent of the heritage of the great fortunes in the world, and they moved to cash, which, the study shows a greater appetite for risk.

However, the richest hold about a quarter of his wealth (26 percent) in cash, either to continue a certain lifestyle, either to protect against the volatility of the markets.

The real estate assets concentrated 20 percent portfolios, bonds 16 percent and alternative investments, 10 percent.

The millionaires also borrow, as evidenced by the report, since 18 percent of them are financed through loans although mostly as a means to make investments (40 percent) or to carry out acquisitions in the real estate sector.

In the medium term, by 2017, the study predicts that the number of large Fortunes rise by about 8 percent worldwide, reaching 70.5 billion euros at the end of this year, especially by the thrust of the “new rich” of Asia-Pacific, where the great fortunes grow 10.3 percent.

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