According to a recent analysis from UBS, billionaires around the world have experienced a significant increase in their wealth over the past year. The report found that the total wealth held by billionaires globally rose nearly 17% in the 12 months leading up to April of this year, jumping from $12 trillion to $14 trillion. Additionally, the total number of billionaires globally also increased from 2,544 to 2,682 over the same period.
The main driver behind this wealth boom has been the US stock market, with the S&P 500 up 28% this year. US billionaires saw the steepest wealth increase, with their fortunes boosted by 28% in the last year. The report also noted that the billionaire population in America grew by 11%, with a total of 835 billionaires recorded in the country in 2024.
Billionaires surveyed in the report expressed a strong preference for North American investments, with 80% indicating a preference for investments in the region over the next 12 months. Additionally, 68% of billionaires stated that they preferred North American investments over the next five years.
The report also highlighted that the tech, industrials, and materials sectors were the main drivers of wealth creation last year. Tech billionaires, in particular, have seen their wealth triple over the last decade, from $789 billion in 2015 to $2.4 trillion as of April this year.
Despite the positive outlook for billionaires, there are concerns about the stock market rally becoming overextended. The S&P 500 has reached more than 50 record-highs in 2024, leading to growing worries about the market being stretched to historical extremes. Some valuation measures suggest that caution may be warranted in the current market environment.