China boasts most billionaires in the world and makes for a great long-term investment

March 28, 2016 01:45 PM

China has the world’s second most millionaires and that number is growing at a faster rate than the U.S. Currently, China has more than one million millionaires. However, China now has the most billionaires In the world, and this means it’s just a matter of time before they have the most millionaires as well.

China added a stunning 242 billionaires in 2015, and if it maintains that pace, there could be even more this year.  China now has 596 billionaires, overtaking the U.S., which has 537, to take the top spot. The Chinese are extremely adept at hiding their resources so that the actual billionaire count could be two or three times higher.

The number of millionaires in China is projected to surge by more than 70% and could top 2.3 million by 2020. A stunning new report from UBS and PricewaterhouseCoopers established that one new billionaire is being created every week. If that is not stunning then we don’t know what is; note this is all going on during a supposedly strong recession.

Game plan

If you are a long-term investor or someone with patience who can see the big picture, then the outlook is all but obvious. China is going to dominate the world for the next 100 years, and its markets will soar to heights that will appear insane by today’s standards. At this point, it makes sense to compile a list of strong companies and slowly establish long-term positions. Every emerging power ran into obstacles but in the long run, they prevailed. The trend is in place: Long-term, China is destined to be the next superpower; it's not a question of if but when.

The Chinese also have a fondness for gold, and as they also have the world’s largest middle class, expect demand for gold to soar in the years to come.

 

 

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About the Author

Sol Palha, with Tactical Investor, is a self-taught student of the markets and provides compelling insights into the markets by combing the key elements of mass psychology with the supreme elements of technical analysis. He has been studying the markets for over 18 years.