The number of millionaires will spike by 40% globally in the next 5 years — but most won’t come from the US. Here is the country to watch (and how to invest in it)

The number of millionaires will increase by 40% globally in the next 5 years - but not many will come from the US.  Here's the country to watch (and how to invest there)

The number of millionaires will increase by 40% globally in the next 5 years – but not many will come from the US. Here’s the country to watch (and how to invest there)

According to a new report from Credit Suisse, the number of millionaires worldwide is on the rise, expected to increase by 40% over the next five years.

Credit Suisse Group AG’s Global Wealth Report 2022 states that we will have millions of millionaires by 2026: more than 87.5 million globally.

You might be thinking, that means the US is about to get that rich too.

But of course, today, the country responsible for producing millionaires isn’t the United States: it’s China.

Don’t miss out

A million dollar surprise

Certainly, China has lost much in productivity and economic drive during the COVID-19 pandemic, as lockdowns have engulfed the country. But developing markets are likely to see a faster recovery from the economic downturn, the report said.

Also Read :  This Group Has $100 Million and a Big Goal: To Fix America

Personal wealth is expected to grow 36% to $169 trillion by 2026, Credit Suisse reports. That’s quite a jump given the current decline in Chinese markets; The MSCI China index is down more than 30% year-to-date.

But is the report perhaps optimistic? China’s growth has its associated risks, particularly geopolitical tensions with the United States and a 2024 deadline to delist certain Chinese stocks from Wall Street. Meanwhile, the rivalry between the two sectors in technology, energy and telecom continues.

Some China ETFs to Consider

If you want to invest in China exchange-traded funds (ETF), low prices make this a good time. Given the size of the Chinese economy, it is likely to recover at a faster pace than other developing countries, Credit Suisse reports. With that in mind, consider these top ETFs.

Also Read :  Texas Man Sentenced to 12 Months and 1 Day for His Role as Executive National Marketing Director in Operating Sham Medical Reimbursement Account Program | USAO-EDLA

WisdomTree China Ex-State-Owned Enterprise Fund (CXSE) An attractive option given the large decline in communications services and cyclical stocks. Furthermore, it has a non-sovereign strategy that allows the company to invest in emerging markets with less risk than other China ETFs.

Read more: The US now has a 25-day supply of diesel – the lowest since 2008. Here’s why it’s more dangerous than a dwindling ‘oil piggy bank’.

If you are looking for a great growth opportunity, Emerging Markets Internet & E-Commerce ETF (EMQQ) It has advantages. The Internet and e-commerce sectors have tremendous growth potential in China.

Also Read :  Colorado Springs LGBTQ nightclub shooting: Patrons subdued suspect

If the tech sector recovers, this fund will continue to increase its U.S. May lead among technology sector ETFs at lower prices than peers.

Growth is coming

ETFs allow easy access to growing industries and avoid the volatility of betting on a single stock. That said, bear in mind that China’s economy will take time to recover, and the aforementioned tensions are not about to disappear.

As with most investment strategies, patience is key.

China has shown muscle in e-commerce and electric vehicle manufacturing, to name a few areas with enormous prospects.

Where Credit Suisse sees an opportunity, those looking to get rich would be well-advised to follow – and become millionaires wherever they are.

What to read next

This article provides information only and should not be considered advice. It is provided without warranty of any kind.

Source

Leave a Reply

Your email address will not be published.

Related Articles

Back to top button