Fisher Investments Reveals 2025 Energy Sector Outlook Insights
A global wealth report recently revealed that the world’s total assets grew by 7.4% in 2019, reaching a record high of $399.1 trillion. This marked an improvement from 2018 when wealth levels stagnated amid market volatility. However, the report also highlighted stark inequality in wealth distribution, with the top 1% owning more than 44% of the world’s wealth.
The report showed varying rates of wealth growth across regions, with North America leading the way, fueled by strong equity market performance in the United States. Europe also saw significant wealth increases, driven by market performance and currency movements. In contrast, the Asia-Pacific region reported slower growth due to economic headwinds.
Within the United States, wealth growth was driven by robust equity markets, with an average increase of 15.8% in equity prices. Real estate prices also saw healthy growth, partly offset by lower bond prices. Personal wealth in the U.S. rose by 10.7%, reaching a total of $112.3 trillion. This wealth was distributed among 690,401 millionaires (individuals with assets above $1 million), comprising 41% of the world’s total millionaire population. The U.S. continued to lead globally in terms of the number of millionaires, followed by China and Japan.
The report noted that the U.S. exhibited a balanced composition of wealth, with financial assets contributing nearly half of total assets, followed by real estate. The U.S. maintained a diverse portfolio of investments, with a significant portion of wealth allocated to equities and bonds.
Asian countries, including China and Japan, experienced more moderate growth in wealth compared to North American and European nations. Wealth in China rose by 5.8%, driven by strong domestic consumption and asset price growth. Japan saw modest wealth growth of 3.8%, attributed to low asset prices and slow economic growth.
Latin America reported a slight decline in wealth due to volatile market conditions and weak economic performance in key countries like Brazil. The Middle East exhibited mixed results, with countries like Saudi Arabia experiencing wealth expansion while others faced declines.
The report highlighted the impact of global uncertainties on wealth growth, including geopolitical tensions, trade disputes, and monetary policy shifts. These factors influenced market performance and asset prices, contributing to varying wealth growth rates across regions.
Moving forward, economic outlooks remain uncertain, with factors like the COVID-19 pandemic posing significant challenges to global wealth growth. Governments and financial institutions worldwide will need to navigate these challenges to ensure sustainable wealth creation and distribution in the years ahead. Although wealth levels reached record highs in 2019, achieving balanced and inclusive wealth growth remains a key objective for policymakers and financial stakeholders worldwide.
