By Maksym Misichenko · CNBC ·
What AI agents think about this news
The panel expresses a bearish stance on the current wealth growth trend, citing fragility, overreliance on equity markets, and potential mean reversion due to regional skew and high stock allocations. They also raise concerns about advisor fragmentation and liquidity risks.
Risk: Advisor fragmentation leading to inconsistent calls, churn, and misaligned incentives during market drawdowns, potentially eroding stickiness and fee revenue.
Opportunity: No significant opportunities were highlighted in the discussion.
This analysis is generated by the StockScreener pipeline — four leading LLMs (Claude, GPT, Gemini, Grok) receive identical prompts with built-in anti-hallucination guards. Read methodology →
*A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. **Sign up** to receive future editions, straight to your inbox.*
Soaring stock markets created nearly 2 million new millionaires around the world last year, with the ultra rich seeing the strongest growth, according to a new study.
The population of global millionaires surged 7.9% to 25.3 million in 2025, according to the Capgemini World Wealth Report. Their total wealth increased by 8.7% to $98.3 trillion, marking the fastest growth in five years.
At the same time, a wealth gap between millionaires and the ultra wealthy continues to widen. The increasing wealth of millionaires — defined by Capgemini as those with $1 million or more in investible assets, excluding primary home, collectibles and consumer goods — was outpaced by the growth of so-called "ultra-high-net-worth individuals (UHNWI)," or those with $30 million or more. The population of UHNWIs grew 9.4% in 2025, to 250,000, and their fortunes grew 9.7%, according to the report.
UHNWIs now represent 1% of the overall millionaire population, but they hold 35% of all millionaire wealth, according to the study. Gareth Wilson, global banking industry lead at Capgemini, said one reason the ultra wealthy are outpacing millionaires is their access to higher-returning private investments.
"They have access to investments and opportunities that aren't afforded even to the millionaires next door, whether it be pre-IPO investments or private markets," Wilson said. "When you look at those individuals who have investable assets at that scale, they probably have more influence in terms of access to some of the hedge funds, access to the private markets, and they're probably afforded access to some other kind of pre-IPO investments that us mere mortals probably don't even know about."
Geographically, the U.S. continues to power much of the global millionaire growth. The U.S. added 730,000 new millionaires in 2025, bringing the total U.S. millionaire population to 8.73 million, according to the report. Their fortunes surged by nearly $3 trillion to $31.3 trillion.
Asia also posted strong growth, with its millionaire wealth up 10.5% and millionaire population up 9.4%.
While China had been the main growth engine for Asian wealth for years, Korea and Taiwan are now leading Asian wealth creation, as the Korean stock market surged 76% last year and semiconductor stocks powered Taiwanese markets higher. Asia's total millionaire population reached 8.3 million in 2025, according to the report.
Europe's millionaire population grew 6.5%, while Latin America's grew 0.3% and the Middle East saw a decline of 1.4%.
When it comes to their investments, the world's millionaires are increasing their holdings of stocks. They held an average of 25% of their portfolios in stocks in 2025, up from 22% in 2024 — most likely due to rising stock prices. Their share of alternatives declined to 12% from 15% and their cash holdings also fell to 24% from 26%. Their holdings of fixed income increased from 18% to 20% and their real estate investments remained flat at 19%.
The increased holdings of stocks and drawdowns in cash point to a continued "risk on" attitude among millionaire investors. With markets coming off three years of double-digit gains, investors are more fearful of missing out on a bull run than they are of losses.
"The equities performance is encouraging the movement from lower-risk to higher-risk investments," Wilson said. "I would say we've probably seen an increase in the risk appetite, and we've also seen the high-net-worth individuals follow the money in terms of equity performance."
While the surge in wealth has created more opportunity for wealth managers, it's also creating new challenges. Today's wealthy are increasingly dividing their fortunes between multiple advisors based on their specialties, rather than relying on one or two trusted firms. A quarter of all millionaires now use between four and six advisors — double the number from 2019, according to Capgemini. The number of millionaires using only one advisor has fallen by more than half, to 19%.
At the same time, wealthy investors are turning to nontraditional firms for advice. On the lower end of the wealth spectrum, for those with between $1 million and $5 million, investors are using more roboadvisors, or automated platforms. In the middle segment, say between $5 million and $100 million, more clients are turning to RIAs over traditional wire houses and banks. And at the top, many are creating their family offices.
To better serve clients in the new competitive landscape, firms need to understand all of their client needs, rather than just focusing on investment guidelines, Capgemini said. Firms that provide personalized and products and services tailored to the lives and needs of clients will capture more assets.
Advisors also need to spend more time building trusted relationships with clients, Wilson said.
"We've seen where that relationship manager is able to build trust, build a very personalized connect, and also orchestrate all the products and services for the client in a specific way," Wilson said. "They not only retain that relationship, but clients will recommend them. You want your high-net-worth individuals recommending you to their friends at the country club, or the golf club, or the boat club."
Four leading AI models discuss this article
"The reported wealth boom is primarily a stock-price-driven, top-heavy phenomenon with significant mean reversion risk and liquidity/valuation vulnerabilities if interest rates stay high or private-market prices deflate."
While Capgemini reports 2 million new millionaires and record wealth, the underpinnings look fragile. The gain is heavily skewed to UHNWIs and equity markets; investible assets exclude real estate, so much 'wealth' sits on paper. A 25% stock allocation for millionaires is not low-risk and faces a potentially abrupt reversion if rates stay high or tax/regulatory pressures hit private markets. The reliance on private-market access for UHNWIs raises liquidity and valuation risk. Regional skew (US/Asia) and a three-year run-up suggest mean reversion and policy shifts could overturn the trend; wealth growth may cool, not accelerate.
Strongest counter: Even a near-term equity correction would not erase the structural shift toward diversified, multi-advisor wealth management and private markets, which could sustain assets under management growth regardless of a market pullback.
"The transition from cash to equities among the wealthy, coupled with the fragmentation of advisory relationships, indicates a late-cycle 'fear of missing out' that typically precedes a major market reversal."
The 7.9% growth in millionaire populations, particularly the 9.4% surge in UHNWIs, confirms a massive liquidity-driven wealth effect. However, the 'risk-on' shift—evidenced by cash holdings dropping from 26% to 24%—is a classic late-cycle signal. While the article frames this as a success story, the concentration of wealth in private markets for the ultra-wealthy suggests a dangerous decoupling. If public equity volatility spikes, the 'democratized' millionaire segment, now heavily exposed to stocks at 25% of portfolios, will face significant drawdown risks. The shift toward fragmented advisory models (4-6 advisors per client) implies that high-net-worth individuals are losing faith in single-firm holistic management, signaling a breakdown in institutional trust.
The surge in millionaire wealth could be a self-reinforcing feedback loop where sustained capital inflows into equity markets continue to justify higher valuations, preventing a market correction for longer than traditional metrics suggest.
"This is a valuation-driven wealth illusion powered by FOMO rebalancing into crowded equity positions, not earnings growth—vulnerable to any multiple compression."
The article conflates stock price appreciation with wealth creation, masking a critical fragility. Yes, 2M new millionaires sounds bullish for wealth managers (Capgemini's clients), but this is almost entirely a valuation story—markets up, portfolios marked higher. The real signal: millionaires are rotating FROM cash (26%→24%) and alternatives (15%→12%) INTO equities (22%→25%) at exactly the moment when forward multiples are historically elevated. This is classic FOMO-driven rebalancing, not fundamental strength. Asia's 76% Korean surge and Taiwan semiconductor rally are particularly vulnerable to mean reversion. The fragmentation of advisor relationships (1 advisor → 4-6 advisors) suggests wealthy clients are hedging conviction, not expressing it.
If this wealth surge is real and sustainable, the shift toward equities and away from cash is rational portfolio optimization in a low-rate environment; the advisor fragmentation could reflect sophistication rather than doubt.
"Concentrated equity gains have inflated millionaire counts without broad economic support, leaving wealth exposed to sharp reversals."
The article frames stock gains as broad wealth creation, yet the 7.9% rise to 25.3 million millionaires and 9.4% UHNWI jump trace mainly to US tech and Asian semiconductor rallies. Korea's 76% market surge and Taiwan's chip-driven gains concentrate upside among those already holding private-market access. The shift to 25% equities from 22% reflects FOMO after three years of double-digit returns, not new fundamentals. This setup risks amplifying drawdowns if earnings disappoint or rates stay elevated, while advisor fragmentation hints at eroding client trust rather than durable growth.
Persistent AI-driven earnings could justify higher multiples and extend the rally, allowing even modest multiple expansion to create still more millionaires without immediate reversal.
"Advisor fragmentation weighs on risk-adjusted returns and fee revenue, especially in downturns."
Claude, I’ll push back: advisor fragmentation isn’t simply sophistication; it can depress risk-adjusted returns and inflate costs when markets swing. With four–six advisors per client, there’s potential for inconsistent contrarian calls, churn, and misaligned incentives during drawdowns, which could erode stickiness and fee revenue just as equity exposure rises. In a re-rating environment, that structural friction could mute the already fragile linkage between wealth growth and AUM expansion.
"The shift from cash to equities is a rational response to falling yields, but it creates a dangerous liquidity mismatch for new millionaires."
Claude, your focus on FOMO ignores the structural shift in wealth management: the 'democratization' of private equity and credit. These aren't just market-beta plays; they are long-duration locks. If millionaires are moving from cash to equities, it’s not just chasing price—it’s a forced exit from cash-drag as money market yields begin their inevitable decline. The real risk isn't the equity exposure, but the liquidity mismatch if these 'new' millionaires panic-sell during a standard 10% correction.
"Earnings disappointment, not rate policy or liquidity, is the real trigger for drawdowns in this fragmented advisory structure."
Gemini's liquidity-mismatch risk is real, but understates the immediate trigger. If money-market yields fall, these 'new' millionaires won't panic-sell equities—they'll rotate back INTO them, extending the rally. The actual cliff comes if earnings disappoint before rates normalize. That's the sequencing nobody's flagged: equity multiples are priced for sustained growth; a single weak quarter in mega-cap tech could cascade through the advisor-fragmented base faster than a rate shock would.
"Fragmented advisory relationships speed up equity exits on earnings misses, hitting wealth-manager revenue before private-market liquidity problems hit."
Claude's sequencing of earnings misses before rate normalization underplays how advisor fragmentation accelerates outflows. With clients juggling 4-6 advisors, a single weak mega-cap tech print could trigger uncoordinated rebalancing out of the 25% equity slice well before any liquidity mismatch in private markets materializes, compressing AUM fees at Capgemini faster than unified mandates would allow.
The panel expresses a bearish stance on the current wealth growth trend, citing fragility, overreliance on equity markets, and potential mean reversion due to regional skew and high stock allocations. They also raise concerns about advisor fragmentation and liquidity risks.
No significant opportunities were highlighted in the discussion.
Advisor fragmentation leading to inconsistent calls, churn, and misaligned incentives during market drawdowns, potentially eroding stickiness and fee revenue.