Wealth creation and conservation can materialize even when political, fiscal and economic headwinds buffet world economies.
• Emerging economies, which have been the engines of growth since the 2008/2009 financial crisis, faced upheavals in 2013 which took a toll on total global growth;
• But equity markets sprung back to life, helping boost wealth across many regions – MSCI World Index +23%, S&P 500 +30%, FTSE 100 +14%, and NSE ASI +47%; and
• Investors in gold felt the impact of a sharp drop in prices – the first annual decline since 2000.
• Nevertheless, some wealth managers feel that “the biggest opportunity for global wealth creation is investing in emerging markets, such as Africa.”
Everyone wants more money.
• People invest to increase their personal freedom, sense of security, and ability to afford the things they want in life. • The responsibility of planning for retirement is shifting away from the state (and children), back towards the individual.
• Globally, the days when you work the same job for 30 years and then retire to a nice fat pension are gone.
• Old-school pension programs are no longer safe, with most likely to disappear over the next 20, 30 and 50 years.