1 Shocking Chart Proves America Is Losing Power to Asia

A recent report predicts that Asia will soon become the world's richest region.

Feb 23, 2014 at 12:25PM


The United States' greatest fear may soon be upon it. According to a recent report by The Boston Consulting Group, Asia will become the world's wealthiest region in less than five years.

The authors of the report, which surveys global private financial wealth, predict that the Asia-Pacific region (excluding Japan) will have stockpiled a total of $48.1 trillion in private wealth by 2017. By comparison, North America's accumulated grubstake is expected to grow to only $48.0 trillion.


As you can see in the chart above, this is a considerable change from the present. In 2012, the most recent year included in the survey, North America had an estimated $43.3 trillion compared to Asia's $28 trillion.

According to the authors (emphasis added):

The growth of private wealth varied considerably by region in 2012, as in previous years, once again highlighting the differences in how the year's economic forces affected the traditional, mature economies of the "old world" and the rapidly developing economies of the "new world."

Wealth increased measurably in the old-world regions of North America, Western Europe, and Japan, while double-digit growth characterized the new-world regions of Asia-Pacific (excluding Japan), Eastern Europe, and Latin America.

The significance of this passing of the torch will be felt particularly hard among financial companies including Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS), and JPMorgan Chase (NYSE:JPM), the nation's three largest wealth managers.

For obvious reasons, it will be critical that these three companies make inroads in emerging markets, and Asia in particular. As the report highlights, "Winning globally in wealth management will not be possible without a leading presence in Asia-Pacific and other emerging markets."

How will they do this? That remains to be seen, though JPMorgan has recently found itself embroiled in controversy over allegedly trying to curry business through the hiring of relatives of high-ranking government employees in China.

Most important for you, the investor, is simply watching how these trends develop and trying to ascertain which of these top wealth managers are navigating this changing world the best.

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John Maxfield owns shares of Bank of America. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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