The Wealth Report from Knight Frank has revealed a surprising trend in the world of investments. While many may assume that the ultra-rich are all about luxury cars and extravagant purchases, a significant portion of their wealth actually comes from traditional investments in equities and property.
In 2023, the number of ultra-high-net-worth individuals globally increased by 4.2%, bouncing back from a decline the previous year. This growth was attributed to the performance of the stock market, with the S&P Global 100 delivering a remarkable 25.4% annual increase. Additionally, other assets like gold and Bitcoin also saw significant gains.
When it comes to property investments, the high-end real estate market remained robust, with prices in prime markets continuing to rise. Private investors dominated the global commercial real estate market, driving a record level of investment.
Interestingly, luxury assets like art and jewelry outperformed other passion investments such as classic cars and whisky, highlighting the need for a more strategic approach to wealth management. This shift in investment strategies among the ultra-rich emphasizes the importance of diversification and staying ahead of market trends in order to maximize returns in today’s rapidly changing economic landscape.
