The world’s billionaires experienced a significant wealth surge in the year leading up to April 2024, driven largely by the record-breaking rally in the US stock market. According to a recent UBS report, total billionaire wealth climbed an impressive 17% to reach a staggering $14 trillion.
The remarkable growth in billionaire wealth can be attributed primarily to the performance of the US stock market, particularly the S&P 500’s 28% rise this year. This surge propelled the fortunes of US billionaires, who saw their wealth jump by 28% during the same period. The US also witnessed an 11% increase in its billionaire population, reaching a total of 835 individuals in 2024. This robust market performance significantly contributed to the overall increase in global billionaire wealth, which rose from $12 trillion to $14 trillion in just 12 months. The total number of billionaires worldwide also increased, from 2,544 to 2,682.
Underscoring their confidence in the North American market, the majority of billionaires surveyed in the UBS report expressed a strong preference for investments in the region. A significant 80% favored North American investments over other regions for the next 12 months, while 68% maintained this preference for the next five years. This overwhelming sentiment highlights the perceived stability and growth potential of the North American market in the eyes of the world’s wealthiest individuals.
The report further identifies the tech, industrials, and materials sectors as the primary drivers of wealth creation during the past year. The technology sector, in particular, has demonstrated exceptional growth. Tech billionaires have seen their combined wealth triple over the past decade, surging from $789 billion in 2015 to an astounding $2.4 trillion as of April 2024. This remarkable expansion underscores the transformative impact of technology on the global economy and its significant contribution to wealth accumulation. UBS notes the increasingly prominent role of tech entrepreneurs across the global economy, despite regional variations observed over the past decade.
Growth of Tech Billionaire Wealth
While the S&P 500 has celebrated over 50 record highs in 2024, concerns are rising about the sustainability of this remarkable rally. Market analysts point to various valuation metrics indicating that the stock market might be overextended, raising questions about potential future corrections. Despite these concerns, the current market momentum has undeniably fueled substantial wealth growth for billionaires globally, particularly those with significant holdings in US equities.
In conclusion, the surge in billionaire wealth underscores the significant influence of the US stock market rally, particularly within the technology sector. While concerns linger regarding market valuations, the prevailing trend indicates a continued concentration of wealth among the world’s wealthiest individuals, driven by robust market performance and strategic investment decisions.
