Wealth in the hands of few
Published in the Geelong Advertiser, November 2012
Everybody would like to have more money, and research by Credit Suisse in its global wealth report suggests we are becoming wealthier.
Australia now holds top spot when it comes to global household wealth. Ask anyone on the street and I am sure many would say they do not feel any wealthier now than a few years ago.
The research also says that the Asia-Pacific region has moved ahead of Europe.
So where is all this money?
If we look closer, the research suggests that 69.3 per cent of all people on the planet have less than US$10,000 ($9626), while another 22.5 per cent have between US$10,000 and US$100,000 ($96,000).
That’s a whopping 91.8 per cent of people on the planet with less than US$100,000 to their name.
The average wealth for Australians is US$354,000 ($340,714), which sounds pretty good.
However, I can only assume that 91.8 per cent of Australians do not have anywhere near that much but, rather, it is in the hands of very few.
These statistics are startling, especially when read for the first time.
But it need not be this way; getting into the top 10 per cent is easier than you might think, it just takes a little knowledge and a bit of time.
Many Australians’ only investment is the compulsory superannuation they receive, which is simply not enough to retire on.
I suggest that with a little effort anyone can buy a property or enter into the share market and become part of the top 10 per cent who control most of the wealth in this country. All one need do is ask how.
So what do we expect in the market?
Last week I suggested that I would not be surprised to see our market falls for one or two weeks before turning and rising once again to my target levels.
The way the market has unfolded this week suggests that is most likely the case and, given the recent fall, our market should start to find some support and rise again next week.
That said, there is still time to see another week or two down first. This will drive our market higher for November, solidly through 4600 points and beyond.
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