All of the World’s Wealth in One Visualization
The financial concept of wealth is broad, and it can take many forms.
While your wealth is most likely driven by the dollars in your bank account and the value of your stock portfolio and house, wealth also includes a number of smaller things as well, such as the old furniture in your garage or a painting on the wall.
From the macro perspective of a country, wealth is even more all-encompassing — it’s not just about the assets held by private households or businesses, but also those owned by the public. What is the value of a new toll bridge, or an aging nuclear power plant?
Today’s visualization comes to us from HowMuch.net, and it shows all of the world’s wealth in one place, sorted by country.
Total Wealth by Region
In 2019, total world wealth grew by $9.1 trillion to $360.6 trillion, which amounts to a 2.6% increase over the previous year.
Here’s how that divvies up between major global regions:
| Region | Total Wealth ($B, 2019) | % Global Share |
|---|---|---|
| World | $360,603 | 100.0% |
| North America | $114,607 | 31.8% |
| Europe | $90,752 | 25.2% |
| Asia-Pacific | $64,778 | 18.0% |
| China | $63,827 | 17.7% |
| India | $12,614 | 3.5% |
| Latin America | $9,906 | 2.7% |
| Africa | $4,119 | 1.1% |
Last year, growth in global wealth exceeded that of the population, incrementally increasing wealth per adult to $70,850, a 1.2% bump and an all-time high.
That said, it’s worth mentioning that Credit Suisse, the authors of the Global Wealth Report 2019 and the source of all this data, notes that the 1.2% increase has not been adjusted for inflation.
Ranking Countries by Total Wealth
Which countries are the richest?
Let’s take a look at the 15 countries that hold the most wealth, according to Credit Suisse:
| Rank | Country | Region | Total Wealth ($B, 2019) | % Global Share |
|---|---|---|---|---|
| Global Total | $360,603 | 100.0% | ||
| #1 | 🇺🇸 United States | North America | $105,990 | 29.4% |
| #2 | 🇨🇳 China | China | $63,827 | 17.7% |
| #3 | 🇯🇵 Japan | Asia-Pacific | $24,992 | 6.9% |
| #4 | 🇩🇪 Germany | Europe | $14,660 | 4.1% |
| #5 | 🇬🇧 United Kingdom | Europe | $14,341 | 4.0% |
| #6 | 🇫🇷 France | Europe | $13,729 | 3.8% |
| #7 | 🇮🇳 India | India | $12,614 | 3.5% |
| #8 | 🇮🇹 Italy | Europe | $11,358 | 3.1% |
| #9 | 🇨🇦 Canada | North America | $8,573 | 2.4% |
| #10 | 🇪🇸 Spain | Europe | $7,772 | 2.2% |
| #11 | 🇰🇷 South Korea | Asia-Pacific | $7,302 | 2.0% |
| #12 | 🇦🇺 Australia | Asia-Pacific | $7,202 | 2.0% |
| #13 | 🇹🇼 Taiwan | Asia-Pacific | $4,062 | 1.1% |
| #14 | 🇨🇭 Switzerland | Europe | $3,877 | 1.1% |
| #15 | 🇳🇱 Netherlands | Europe | $3,719 | 1.0% |
| All Other Countries | $56,585 | 15.7% |
The 15 wealthiest nations combine for 84.3% of global wealth.
Leading the pack is the United States, which holds $106.0 trillion of the world’s wealth — equal to a 29.4% share of the global total. Interestingly, the United States economy makes up 23.9% of the size of the world economy in comparison.
Behind the U.S. is China, the only other country with a double-digit share of global wealth, equal to 17.7% of wealth or $63.8 trillion. As the country continues to build out its middle class, one estimate sees Chinese private wealth increasing by 119.5% over the next decade.
Impressively, the combined wealth of the U.S. and China is more than the next 13 countries in aggregate — and almost equal to half of the global wealth total.
Energy
The Periodic Table of Commodity Returns
Which individual commodities were the best performers in 2019, and how do those numbers compare to the past decade of data?
Published
3 days ago
on
January 13, 2020The Periodic Table of Commodity Returns 2019
In 2019, every major asset class finished in the black.
And although the broad commodity market finished up 17.6% on the year, the performances of individual commodities were all over the map. For those familiar with the sector, that’s pretty much par for the course.
That said, the lack of an obvious correlation in commodity markets also makes for a thought-provoking and humbling exercise: comparing the annual returns of commodities against the data from the past decade.
A Decade of Commodities (2010-2019)
Today’s visualization comes to us from U.S. Global Investors, and it compares individual commodity returns between 2010 and 2019.
You can use the interactive tool on their website to toggle between various settings for the table of commodity returns, such as breaking them down by category (i.e. energy, precious metals, etc.), by best and worst performers, or by volatility over the time period.
Let’s dive into the data to see what trends we can uncover.
Palladium: The Best Commodity, Three Years Straight
In 2019, palladium finished as the best performing commodity for the third straight year — this time, with a 54.2% return.
You could have bought the precious metal for about $400/oz in early 2010, when it was a fraction of the price of either gold or platinum.
Nowadays, thanks to the metal’s ability to reduce harmful car emissions and an uncertain supply situation, palladium trades for above $2,000/oz — making it more expensive per ounce than both gold and platinum.
Oil and Gas: Opposite Ends of the Spectrum
As key energy commodities, oil and natural gas have an inherent connection to one another.
However, in 2019, the two commodities had completely diverging performances:
Crude oil prices gained 34.5% on the year, making it one of the best commodities for investors — meanwhile, natural gas went the opposite direction, dropping 25.5% on the year. This actually cements gas as the worst performing major commodity of the decade.
“That’s Gold, Jerry!”
Finally, it’s worth mentioning that gold and silver had a bounceback year.
Gold gained 18.3% to finish with the best return the yellow metal has seen in a decade. Silver followed suit with a similar story, rallying 15.2% over the calendar year.
Precious metals now sit at multi-year highs against an interesting economic and geopolitical backdrop to start 2020.
Where do you see the above commodities ending up on next year’s edition of the rankings?
Economy
Everything You Need to Know About Recessions
The economic cycle is a series of peaks and valleys. Analyzing economic data going back to 1950 helps put recessions into perspective.
Published
1 week ago
on
January 9, 2020Everything You Need to Know About Recessions
Just like in life, markets go through peaks and valleys. The good news for investors is that often the peaks ascend to far greater heights than the depths of the valleys.
Today’s post helps to put recessions into perspective. It draws information from Capital Group to break down the frequency of economic expansions and recessions in modern U.S. history, while also showing their typical impact.
What is a Recession?
Not all recessions are the same. Some can last long while others are short. Some create lasting effects, while others are quickly forgotten. Some cripple entire economies, while others are much more targeted, impacting specific sectors within the economy.
Recession is when your neighbor loses their job. Depression is when you lose yours.
– Harry Truman
According to the National Bureau of Economic Research, a recession can be described as a significant decline in economic activity over an extended period of time, typically several months.
In the average recession, gross domestic product (GDP) is not the only thing shrinking—incomes, employment, industrial production, and retail sales tend to shrink as well. Economists generally consider two consecutive quarters of declining GDP as a recession.
The general economic model of a recession is that when unemployment rises, consumers are more likely to save than spend. This places pressure on businesses that rely on consumers’ income. As a result, company earnings and stock prices decline, which can fuel a negative cycle of economic decline and negative expectations of returns.
During economic recoveries and expansions, the opposite occurs. Rising employment encourages consumer spending, which bolsters corporate profits and stock market returns.
How Long Do Recessions Last?
Recessions generally do not last very long. According to Capital Group’s analysis of 10 cycles since 1950, the average length of a recession is 11 months, although they have ranged from eight to 18 months over the period of analysis.
Jobs losses and business closures are dramatic in the short term, though equity investments in the stock market have generally fared better. Throughout the history of economics, recessions have been relatively small blips.
| Average Expansion | Average Recession | |
|---|---|---|
| Months | 67 | 11 |
| GDP Growth | 24.3% | -1.8% |
| S&P 500 Returns | 117% | 3% |
| Net Jobs Added | 12M | -1.9M |
Over the last 65 years, the U.S. has been in an official recession for less than 15% of all months. In addition, the overall economic impact of most recessions is relatively small. The average expansion increased GDP by 24%, whereas the average recession decreased GDP by less than 2%.
In fact, equity returns can be positive throughout a contraction, since some of the strongest stock rallies have occurred in the later stages of a recession.
Buying the Dip: Recession Indicators
Whether you are an investor or not, it would be wise to pay attention to potential recessions and prepare accordingly.
There are several indicators that people can watch to anticipate a potential recession, which might give them an edge in preparing their portfolios:
| Recession Indicator | Why is it Important? | Average Length Until Recession |
|---|---|---|
| Inverted Yield Curve | Often a sign the U.S. Fed has hiked short-term rates too high or investors are seeking long-term bonds over riskier assets. | 15.7 months |
| Corporate Profits | When profits decline, businesses cut investment, employment, and wages. | 26.2 months |
| Unemployment | When unemployment rises, consumers cut back on spending. | 6.1 months |
| Housing Starts | When the economic outlook is poor, home builders often cut back on housing projects. | 5.3 months |
| Leading Economic Index | Aggregation of multiple leading economic indicators. gives a broader look at the U.S. economy. | 4.1 months |
This is not a magic rubric for anticipating every economic downturn, but it helps individuals see the weather patterns on the horizon. Whether and where the storm hits is another question.
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