By Alec Hogg
Much of yesterday was spent on reading the annual Morningstar global investment flows report. My piece this morning for Biznews Premium subscribers draws some important conclusions on how and why markets are likely to perform this year. The section breaking down the geographic location of the world’s savings also offers interesting insights.
Of $30.6 trillion housed in 95,000 investment fund portfolios in 85 countries, a hefty $17.4 trillion (57%) is in the US. Next comes tax havens like Luxembourg and Ireland with $4.9 trillion (16%) followed by $4.2bn (14%) in Europe. That’s just under 90% of the total in the West. Asia, where 60% of the world’s population lives, has a modest $1.3 trillion in invested funds (4%) while Africa has just $169bn (0.6%).
If political leaders are serious about uplifting citizens from poverty by helping them create wealth, these worthies should study and replicate examples of those who have achieved it. By ditching the disastrous Zimbabwean experiment for the Western cornerstone of an obsessive defence of citizens’ property rights. We live in hope.
