Email
Password
Remember meForgot password?
    Log in with Twitter

article imageCensus finds that billionaires are hoarding their wealth

By Justin King     Sep 23, 2014 in World
The Billionaire Census conducted by Wealth-X and UBS has concluded that the world’s richest people are keeping their money in cash, rather than investing it.
The census found that on average the world’s elite are holding about $600 million, about 20 percent of their net worth, in cash. Last year, billionaires were only holding about $60 million in cash.
The study concluded that
This increased liquidity signals that many billionaires are keeping their money on the sidelines and waiting for the optimal moment to make further investments.
Experts point to recent financial meltdowns that hurt the investments of the world’s wealthiest people. The study stated:
The apparent safety of cash, reinforced by the painful psychological experience of the 2008-09 global financial crisis and the subsequent troubles within the European Monetary Union, likely reinforces the tendency to favor this cautious allocation strategy.
Kristina Hooper, a U.S. investment strategist for Allianz Global Investors, said
This trend speaks to the general skepticism about this bull market as opposed to any sign the market has topped.
The census also determined that the average holdings of today’s billionaire are about $3.1 billion. More than two-thirds of the world’s nations spend less than this figure on their military each year. There are 2,325 billionaires in the world.
That puts $7.2 trillion in the hands of less than 2500 people. The amount spent for the entire US government, including the military, was $3.45 trillion in 2013.
A report by Standard and Poor’s stated that rising income inequality is a concern for those above the poverty level. State governments are losing a major source of tax revenue. Gabriel Petek, the analyst who wrote the report said
Rising income inequality is not just a social issue. It presents a very significant set of challenges for the policymakers.
The $7.2 trillion held by the billionaires of the world is four times more than every single yearly state budget combined.
More about Money, Billionaires, 1, income inequality, Wealth
 
Latest News
Top News