That growing wealth inequality

Britain lost 18,000 millionaires last year as the pandemic battered financial markets, while the rest of Europe’s rich grew their fortunes.

The UK is now home to 573,000 people with investable assets of more than $1m (£722,000) compared with 591,000 last year, according to Capgemini’s World Wealth Report.

At the same time their total wealth fell 1pc as Britain’s deepest recession in 300 years trashed asset values.

Doesn’t seem to be happening, does it?

8 thoughts on “That growing wealth inequality”

  1. Couldn’t be arsed to read the drivel but did it state what assets declined in value? Houses rose and are still rising. The Stock Markets more than recovered from the crash in April. Certain types of business property have obviously been written down. But we have no real idea of how businesses have been affected by the lockdowns as yet.

  2. I remember reading somewhere that about the only time wealth or income gaps shrink is when there’s war or recession. Rising tide and all that.

  3. Figure 3 of the report gives the HNWI population by country. The country ranking hasn’t changed, but the only countries with falls in HNWI population are the UK, Kuwait and Brazil.

    Cable seems broadly flat, so I’d assume that there’s some sort of preference for asset classes peculiar to the UK, or that the HNWI/U-HNWI distribution is different from other countries.

    In other news, the Iranian HNWI population increased by nearly 22%(?)

  4. It surprised me but FTSE all share and 100 are still below pre-Covid levels but FTSE 250 and AIM have more than recovered. It is a more complicated situation than the quote suggests. Certain types of asset have been impacted but other areas are booming – mining for one.

  5. “with investable assets of more than $1m”

    Oh what a pity. I’d calculated a capitalised value for our pensions (including State Pensions), added a hugely generous estimate of what the house is worth, bunged on our savings, and persuaded myself that in just a few years …

    And now I learn its investable assets. I had wondered why we didn’t live like millionaires.

  6. ” But we have no real idea of how businesses have been affected by the lockdowns as yet.”
    Don’t think we’re going to know for a couple of years. There are businesses that are no longer viable but still trading. I’d say a lot of them.

  7. “Investable assets”

    Surely DC pensions count within this description? They are my assets that I have chosen to invest in a tax free wrapper rather than taking the cash.

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