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Mapped: Global Wealth by Region (2023-2028F) https://ift.tt/lBg8Wfq See this visualization first on the Voronoi app. Use This Visualization Mapped: Global Wealth by Region (2023-2028F) This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources. Did you know that 90% of wealth is held in just three of the world’s regions? In this graphic, we show a geographical breakdown of global wealth in 2023 and 2028 (forecasted). Figures shown represent net wealth which is equal to financial wealth plus real assets minus liabilities. Data was sourced from the Boston Consulting Group’s (BCG) Global Wealth Report 2024.     Data and Key Takeaways The numbers we used to create this graphic are listed in the table below. Local currencies were converted into USD at 2023 year-end exchange rates. Region 2023 2028 CAGR* North America $169T $227T 6% Latin America $17T $26T 8% Western Europe $103T $121T 2% Eastern Europe & Central Asia $11T $15T 4% Asia-Pacific $158T $209T 6% Middle East & Africa $19T $31T 8% *CAGR = Compound annual growth rate From this dataset we can see that North America, Asia-Pacific, and Western Europe accounted for the vast majority of net wealth in 2023. This is due to these regions’ diversified economies, advanced financial systems, and high levels of industrialization. Looking forward to 2028, BCG expects both Latin America and Middle East & Africa to grow the fastest, at an 8% growth rate. Both European regions, on the other hand, are expected to grow at the slowest pace. Financial Wealth Creation BCG defines “financial wealth” as cash and deposits, bonds, public and private equities, investment funds, life insurance and pensions, and cross-border wealth. In 2023, North America accounted for over 50% of all new financial wealth created, largely thanks to robust stock market gains (the S&P 500 rose 24% over the year). Looking ahead, BCG believes that Asia-Pacific will drive a larger share of financial wealth creation. Of the $92 trillion expected to be created by 2028, North America will account for 44% ($40 trillion), and Asia-Pacific for 29% ($27 trillion). This is largely due to growth in India, which generated $588 billion in new financial wealth in 2023, the largest in its history.   The post Mapped: Global Wealth by Region (2023-2028F) appeared first on Visual Capitalist. INFO via Visual Capitalist https://ift.tt/kYZ1KM0 August 19, 2024 at 07:24AM

https://lnkd.in/g2KNrRCs "Fixed-income markets are the lifeblood of the global economy. Access to credit—in other words, the ability to borrow money—played a major role in society’s evolution over the past 500 years and continues to support innovation for economic and social advancement today. Modern fixed-income markets are multifaceted, with lending made available in many forms (i.e., bonds and loans) and via a variety of lenders, from traditional banks to long-term investors to emerging technology companies. While the underpinnings of these markets can feel complex, understanding why they exist, how they have evolved over time and how these markets operate today is crucial to ensure they remain robust and effective going forward."

Fiscal spending supported the economy in 2023. As the Fed began raising rates in 2022 at the fastest pace since the 1970s, many were predicting a recession in 2023. After the initial hikes starting in March 2022, fiscal spending in 2023 may have helped soften the blow of rising rates as the federal budget deficit as a percentage of GDP grew from 5.2% to 6.2%. Read more on the Macroeconomic Environment in our Q2 Market Outlook at: https://lnkd.in/eikr-jis #privatecredit #creditmarkets

Ryan McMaken, executive editor at the Mises Institute, reports that in December 2023, the contraction of the True Money Supply (TMS) continued to slow, with the year-over-year (YOY) growth in the money supply at –7.32%. That's slightly less than November's YOY growth of –8.36% and October's YOY growth of -9.33%. Money-supply growth has now been negative for fourteen months in a row, since it first turned negative in November of 2022. The money supply has fallen by approximately $2.8 trillion (or 12.8 percent) since the peak in April 2022. Money supply growth has proven to be an excellent measure of economic activity and an indicator of coming recessions. During periods of economic boom, money supply tends to grow quickly as commercial banks make more loans. Recessions, on the other hand, tend to be preceded by slowing rates of money supply growth. McMaken correctly points out that the money supply does not need to actually contract to signal a recession. As explained by Ludwig von Mises, recessions are often preceded by a mere slowing in money supply growth. But the drop into negative territory we've seen in recent months does help to illustrate just how far and how rapidly money supply growth has fallen. That is generally a red flag for economic growth and employment. https://lnkd.in/gXXPynPH

Zero Interest Rate Policy (ZIRP) is an extreme form of monetary policy where a central bank, like the Federal Reserve in the U.S., reduces its nominal short-term interest rate target to near zero. By lowering the cost of borrowing to nearly nothing, ZIRP is intended to: 1. Stimulate Economic Growth: By making credit inexpensive, ZIRP encourages businesses to borrow and invest in projects, which can lead to increased production, job creation, and higher consumption. 2. Boost Consumer Spending: Lower interest rates also translate to cheaper loans for consumers, leading to increased spending on large items like houses, cars, and other consumer goods. 3. Combat Deflation: Deflation can lead to reduced consumer spending, as people delay purchases in the hopes that prices will continue to fall. ZIRP attempts to stave off deflation by encouraging immediate spending through cheap credit. 4. Increase Investment in Riskier Assets: With interest rates near zero, the returns on savings accounts, bonds, and other “safe” assets are unattractive. Investors are thus encouraged to seek higher returns in riskier assets such as stocks, real estate, or corporate bonds, thereby boosting the values of these assets. Implementation of ZIRP: 1. Post-2008 Financial Crisis: One of the most well-known instances of ZIRP was implemented by the Federal Reserve in response to the 2008 global financial crisis. The crisis led to a collapse in financial markets, a sharp contraction in economic activity, and skyrocketing unemployment. To prevent a depression, the Federal Reserve reduced its interest rates to near zero and kept them there for nearly seven years, from 2008 to 2015. 2. COVID-19 Pandemic: During the COVID-19 pandemic, central banks around the world, including the Federal Reserve, again resorted to ZIRP-like measures to mitigate the devastating economic fallout from the pandemic. The idea was to maintain liquidity in the financial system and avoid widespread business closures and layoffs. Impacts of ZIRP 1. Positive Impacts: • Economic Recovery • Asset Price Appreciation • Credit Expansion 2. Negative Impacts: • Asset Bubbles • Distortion of Risk • Low Savings Returns • Increased Corporate Debt • Dependence on Cheap Money 3. Global Repercussions: • Currency Depreciation • Capital Flight from Emerging Markets ZIRP and the Tech Industry The tech industry, in particular, has benefited from ZIRP, as the influx of cheap capital allowed startups and established companies alike to raise funding at low costs. VCs and PE firms poured money into tech startups, often with less concern for profitability in the short term focusing instead on long-term growth. With rising interest rates post-ZIRP, many tech companies that relied on external funding now face difficulties. Investors are more cautious, demanding stronger business fundamentals, profitability, and less speculative growth projections. #ZIRP #ZeroInterestRate #Economics

Fact or fiction? “Equities and bonds are pricing very different economic outcomes” It’s a great soundbite that grabs listeners’ attention, implying that one large group of investors will be wrong, and so there could be a great opportunities for others. But we think it’s unlikely that it’s often really the case. Recently that narrative has emerged again with bond markets pricing several interest rate cuts by year end, while equities remain relatively well supported. So, let’s think about what might enable investors in equities and bonds to price very different scenarios: 1️⃣ Investors in different asset classes analyse very different economic data 2️⃣ Or they interpret it very differently 3️⃣ Or there is some other factor heavily distorting one market (for example, quantitative easing in the past in bond markets) We think both 1️⃣ and 2️⃣ are hard to justify most of the time. Similar macroeconomic data is relevant to most broad markets and, on average, investors faced with the same information will reach similar conclusions. At times, 3️⃣ may be true, though the broader the market, the harder it is to structurally distort it. For example, the team believe the UK index-linked Gilt market is still significantly distorted by demand from UK pension schemes, but that doesn’t impact broad, global bond markets. When we find market pricing hard to reconcile across different markets, our starting point is generally to assume we’ve missed something. We think that’s much more likely than the conditions above being met. So, then we look to rework our logic to find the gaps. Right now, for example, we think equity and bond market pricing can be reconciled by the idea that with structural inflation pressures are easing, along with growth, implying that there are a wide range of scenarios where central banks can ease, without implying a major slowdown. More broadly, while the efficient market hypothesis isn’t a perfect model, we think it’s likely that widely understood information is already embodied in asset prices, and genuine price discrepancies between markets and securities are unlikely to be either large or persistent most of the time. For professional investors only. Capital at risk

Liquidity Incoming: Opportunities and Challenges for Investors in Q4 2024 Current Economic Context: The last quarter of 2024 presents positive news for the global market, with expectations of a significant influx of liquidity. In the United States, public debt has surpassed $35.66 trillion, with an increase of over $345 billion in September. This has been partially influenced by the recent interest rate cuts by the Federal Reserve. Expansive Monetary Policies: In addition to the United States, countries such as Switzerland, the United Kingdom, and the European Central Bank have lowered interest rates, increasing the global money supply to over $21 trillion. In Asia, China and Japan are implementing fiscal stimuli and maintaining low interest rates, contributing to a high liquidity environment. Possible Outcomes: Increase in Liquidity: Greater availability of credit for businesses and consumers, with potential growth in spending and investments. Stock Market Growth: Possible increase in stock prices and interest in innovative sectors, but also a risk of volatility. Interest in Alternative Assets: Increased attention on cryptocurrencies and investments in emerging sectors. Inflationary Pressures: Risks associated with inflation that could lead central banks to raise interest rates in the future. Investment Strategies: The need for portfolio diversification and attention to “risk-on” investments to maximize opportunities. Conclusion: In a context of increasing liquidity and expansive monetary policies, investors face a landscape rich in opportunities but also challenges. The combination of lower interest rates and global fiscal stimuli can favor stock market growth and encourage investments in innovative and alternative sectors. However, it is crucial to remain vigilant about potential inflationary pressures and possible market corrections. For investors, this is an ideal time to review strategies, consider portfolio diversification, and carefully evaluate where to allocate capital. Being well-informed and ready to adapt to market dynamics will be essential to make the most of the opportunities that arise. Ultimately, a strategic and proactive approach could be key to successfully navigating this evolving economic environment. If you need further insights or clarifications, feel free to ask! Follow me and copy me, Ombretta

Vietstock LIVE: VN-Index 2024 Forecast Vietstock Fanpage Vietstock Youtube Ending the first month of 2024, the macroeconomic situation of our country continues to be stable with controlled inflation. The import-export turnover in January saw a strong increase compared to the same period last year, along with the trade surplus maintaining a positive level. In addition, foreign direct investment (FDI) has also continued to rise, and public investment has been strongly promoted with many key transportation projects expected to be completed this year. The interest rates of banks continue to be low, and the repayment pressure on business loans has decreased thanks to the support policies of the central bank and government. This is a favorable time for businesses to take advantage of cheap capital to strengthen internal resources, recover, and return to a phase of growth. The VN-Index, symbolizing the Year of the Horse, has smoothly surpassed the 1,200 point milestone, bringing with it many expectations of investors for a successful year. Will the trend of the VN-Index continue to recover to previous high levels? Which variables will have a significant impact on the direction of the VN-Index? The Vietstock LIVE program with the theme “Predicting VN-Index 2024” will clarify these issues, help investors have a clearer perspective, identify opportunities as well as risks, and recognize the factors that affect the trend of the VN-Index. Through this, investors can determine the most suitable capital allocation strategy to maximize profits. The program will be held online at 3 PM on Thursday, February 29, 2024. Vietstock LIVE is an online dialogue series with experts on hot economic and financial topics and their impacts on investor strategies. Through the program, experts will share experiences, asset allocation methods to help investors build their own reasonable investment strategies ahead of unexpected events. The program is coordinated by Mr. Nguyen Quang Minh – CMT Charterholder, Member of the American Association of Certified Market Technicians (MTA), Director of Vietstock Research Division. Mr. Minh has nearly 20 years of experience in analysis and investment in the Vietnam stock market. In addition, this season of Vietstock LIVE will feature the participation of Mr. Huynh Huu Phuoc, Branch Director of Can Tho – RONG VIET Securities Joint Stock Company. Mr. Phuoc graduated with a Bachelor’s degree in Investment Economics, with 15 years of experience in the fields of finance, investment, and securities. The livestream “Vietstock LIVE: Identifying Investment Opportunities in 2024” will take place online at 3 PM on Thursday, February 29, 2024. The program will be broadcast live on Vietstock’s Fanpage and YouTube channel. Investors are invited to watch. The post Vietstock LIVE: VN-Index 2024 Forecast appeared first on xe.today.

New Post: Deutsche Bank CFO James von Moltke: Economy having a ‘pinch me’ moment - It’s not often economists are pleasantly surprised by the whims of the economy, but James von Moltke, CFO of Deutsche Bank, describes witnessing its resilience in 2023 as something of a “pinch me” moment. At the outset of last year, Wall Street was convinced the U.S. was headed for a recession: a so-called ‘hard landing’ was on the cards according to many, with others believing a contraction of the industry was “inevitable.” But that hasn’t happened. Consumers have been surprisingly resilient, whether that meant spending the last of their lockdown cash or buying deliberately at peak trading times like Black Friday and Christmas. This in turn has helped businesses keep their heads above water with stocks like the Magnificent 7 also buoyed by this year’s AI-prompted rally. And while 2024 has been dubbed the year of “normalization”, von Moltke said he is among those who have an optimistic outlook for the next 12 months. “My view is it’s a bit of a pinch me moment,” von Moltke told Bloomberg at the World Economic Forum in Davos. “The resilience of not just economies but also of financial markets to the geopolitical crises that are going on, to the rise in interest rates and the fight against inflation has been remarkably strong. “Whether that continues, I think we’re all hopeful and the sentiment for 2024 is positive. There are a lot of good supporting actors for that positive sentiment.” The take is a far cry from the outlook issued by Deutsche Bank analysts even as late as October 2023. In the latter half of last year, the institution’s macro strategist Henry Allen wrote: “As we look back at the 1970s today, there are a striking number of parallels with our own time.” These parallels include oil shocks, war in Israel and persistent inflation which helped usher in a decade of stagflation—a toxic mix of weak economic growth and spiraling inflation. Allen added: “Now is not a time to get complacent…the 1970s showed how unexpected shocks could rapidly send inflation higher once again.” Perhaps a cocktail of a rally towards the end of the year and better-than-expected data—leading to a so-called ‘Goldilocks scenario’—has convinced experts like von Moltke that the stability is here to stay. “The distance traveled so far has been surprising to the upside,” he continued. An underlying resilience Even when addressing concerns for the year ahead—setting aside any potential unknown fallout from elections, the Russian invasion of Ukraine and the Israel-Hamas conflict—von Moltke was hopeful industries could absorb issues, namely in the commercial real estate sector. “The rise in rates a concern about the refinancing wave that would take place, particularly for the most sensitive areas … commercial real estate top among those,” he explained.

“Survive ‘til ‘25” might be a useful mantra for borrowers and businessowners, but I don’t think it’s one investors should adopt. Rate cuts are on our doorstep, change is in the wind, and financial markets look ahead. “Don’t wait ‘til ‘25” is more appropriate, because if you do you’ll likely find yourself left behind. Here’s my take on what investors should be thinking about.