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World Risk Poll: How Long Can People Survive Without Income?
How Long Can People Survive Without Income?
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In the wake of natural disasters or economic shocks, a person could quickly be left without income, which is why financial security is such an important aspect of resilience.
In this graphic, sponsored by Lloyd’s Register Foundation, we explore their latest survey, World Risk Poll 2021: A Resilient World? to see how financially secure people from country to country really are.
Assessing Financial Security
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In 2021, Lloyd’s Register Foundation partnered with Gallup and polled 125,000 people from 121 countries, asking how long people could cover their basic needs without income. Responses were classified by those who could survive for more than a month, a month or less, less than a week, and those who didn’t know or refused to say.
Here is a ranking of those who could cover their needs for the longest length of time without income:
And the shortest length of time:
A Cause for Alarm
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The study found that generally, those who could cover their needs the longest came from developed economies, and those who could cover their needs for the shortest length of time came from developing economies where financial security is more tenuous.
With all that said, the volume of people around the globe who struggle financially is the true cause for alarm. The study found that a staggering 2.7 billion people could only cover their basic needs for a month or less without income, and of that number, 946 million could survive for a week at most.
Tackling Financial Insecurity
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Urgent action is needed to tackle this disparity in income and lack of financial security, especially in developing economies. If left unchecked, this undermines global resilience in the face of climate change, natural disasters, and any number of other shocks.
In the fourth and final part of this series, we’ll explore the World Risk Poll 2021: A Changed World? Perceptions and Experiences of Risk in the COVID Age and learn how the world views climate change.
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Visualized: How Long Does it Take to Double Your Money?
Visualized: How Long Does it Take to Double Your Money?
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This was originally posted on Advisor Channel. Sign up to the free mailing list to get beautiful visualizations on financial markets that help advisors and their clients.
At first glance, a 7% return on your investment may not seem that impressive. Yet what if you heard that your money could double in roughly 10 years?
The above graphic takes the rule of 72 shortcut and uses the more precise logarithmic formula to show how long it takes to grow your money at different annualized returns.
Why it Pays to Know the Math
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Using the classic rule of 72, an investor can estimate how long it takes to double their money. At 7% annual returns, an investor would see $10,000 grow to $20,000 in about a decade by taking 72 and dividing it by 7%, the rate of return.
While the rule of 72 serves as a guide to estimating when your money will double, the more accurate way to arrive at this number is through a logarithmic equation.
In short, it divides the natural log of 2 by the natural log of 1 and adds this to the rate of return. We can see in the table below how leads to different results from the rule of 72:
Consider if an investor put their money in the S&P 500. Historically, it has averaged 11.5% returns between 1928 and 2022. In 6.4 years, their money would double, assuming these average returns.
If they were to put this money in a savings account, where the average savings rate is 0.6%, it would take 120 more years for their money to reach this potential.
In real terms, which takes inflation into account, an investor would see their money lose value if they parked it in a savings account. Historically, inflation has averaged 3.3% over the last century.
Historical Asset Returns
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Here’s how often different assets double, based on historical returns between 1928 and 2022:
Source: NYU Stern. *Represents Baa corporate bonds, which are considered investment grade. **Includes reinvested dividends.
We can see that 3-month T-Bills, often considered among the safest assets, doubled about every 21 years. Often, investors consider this a place to put cash that is low-risk and highly liquid.
Interestingly, real estate assets had returns of 4.4%, doubling roughly every 16 years.
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Visualized: What is the Artificial Intelligence of Things?
What is the Artificial Intelligence of Things?
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The convergence of artificial intelligence (AI) and the Internet of Things (IoT), known as the Artificial Intelligence of Things (AIoT), is expected to accelerate digital transformation.
In this graphic, the third and final in the Digital Evolution series sponsored by Global X ETFs, we dive into the world of AIoT platforms and zero in on their impact on certain industries.
AIoT Platforms
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AIoT platforms integrate AI programming into IoT devices such as sensors, smart TVs, security cameras, or thermostats. When deployed at scale, AIoT can become capable of everything from managing city traffic flow to improving hospital remote patient monitoring.
AI algorithms enable devices to gather and analyze massive amounts of data, extract valuable insights, and make intelligent decisions. This enhances the functionality and efficiency of existing IoT devices.
Real World Applications
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Here are some examples of the numerous applications of AIoT in today’s world:
Smart Homes: AIoT brings intelligence to our living spaces by enabling seamless automation, enhanced energy efficiency, and improved security. This includes smart thermostats that automatically adjust to their environment, or security cameras that detect unwanted intruders instead of cars, animals, or planned guests.
Edge Computing: AIoT can enable a computer to shunt a portion of its processing requirements to another computer on the same network. This reduces latency, enhances security, and enables quicker decision-making.
Healthcare: By integrating AI with medical devices, wearables, and healthcare systems, practitioners can gain deeper insights into patient health, improve diagnosis accuracy, and deliver personalized treatments.
Smart Cities: The capstone of AIoT applications, smart city technology empowers municipalities to optimize resource utilization, streamline traffic management, and enhance public safety. An example would be in Zurich, where sensors automate street lights to complement traffic flow, resulting in a 70% reduction in energy consumption.
Embracing a Connected World
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AIoT platforms are projected to grow at a staggering compound annual growth rate (CAGR) of 37.7% between 2022 and 2027.
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Ranked: Artificial Intelligence Startups, by Country
Ranked: Artificial Intelligence Startups, by Country
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From DALL-E’s ability to help artists bring their vision to life, to automating the power requirements of a major metropolis, artificial intelligence (AI) has the potential to radically transform many aspects of the society we live in today.
But this potential would go unrealized without the driving force of AI startups all over the globe.
In this graphic, the first in the three-part Digital Evolution series sponsored by Global X ETFs, we delve into the dynamic landscape of AI investing and explore which countries are winning the race when it comes to number of startups with private investment of over $1.5 million.
The AI Race
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The United States and China remain at the forefront of AI investment, with the former leading overall since 2013 with nearly $250 billion invested in 4,643 companies cumulatively.
But these investment trends continue to grow. In 2022 alone, 524 AI startups were founded in the U.S., attracting $47 billion in non-government funding. Meanwhile, China boasted the highest average corporate investment in 2022, with its 160 newly-founded AI startups receiving $71 million each on average.
Here are the top 10 countries winning the AI investment race using data from the AI Index 2023 Annual Report:
Investment Across Industries
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Artificial intelligence investment was spread across a variety of global sectors in 2022:
### Healthcare
With its myriad of applications, the healthcare sector led the way in 2022’s AI investment journey, attracting $6.1 billion globally.
### Data Management, Processing, and the Cloud
Data management, processing, and cloud services received $5.9 billion in investment. These AI-powered solutions optimize operations and can parse vast amounts of data.
### Fintech
AI’s potential to analyze extensive financial datasets, detect patterns, and automate processes has made it an attractive investment opportunity. Consequently, over $5.5 billion was invested in AI fintech in 2022.
### Cybersecurity and Data Protection
The cybersecurity and data protection sector attracted $5.4 billion in investment, underscoring AI’s crucial role in enhancing security measures and mitigating risk.
### Retail
AI supporting the retail sector also had a massive $4.2 billion investment in 2022.
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Visualizing Google’s Search Engine Market Share
Visualizing Google’s Search Engine Dominance
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Google is ubiquitous in the daily lives of billions of people around the world, with leading positions in online search, maps, and other services.
In fact, Google’s dominance is so far-reaching, it has led the U.S. Justice Department to launch a civil antitrust lawsuit for what it believes are examples of anticompetitive and exclusionary conduct.
This graphic, which uses data from Similarweb, shows the scale of Google’s lead over major search engine competitors like Bing and Yahoo.
Global Search Engine Market Share
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The data we used to create this graphic is provided in the table below. It is global search engine market share as of June 2023, across all platforms (desktop, mobile, and tablet).
Note that this analysis does not include China, where Google and other American tech firms are currently banned, or Russia, where Google has ceased operations.
The largest player included in “Other” is South Korea’s Naver (0.48% global market share), which is similar to Google in that it offers a plethora of online services like search, video, and mobile payments.
Google Prepares for its U.S. Lawsuit
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In January 2023, the U.S. Justice Department announced a civil antitrust lawsuit against Google for monopolizing digital advertising technologies.
Today’s complaint alleges that Google has used anticompetitive, exclusionary, and unlawful conduct to eliminate or severely diminish any threat to its dominance over digital advertising technologies
Merrick B. Garland, Attorney General
The Justice Department originally made several antitrust arguments. Potential actions that were deemed red flags include setting Google as a default mobile browser on Android phones, designing search results to disadvantage competitors, and the company’s ongoing partnership with Apple for its Safari browser. That said, some of the less substantial claims have since been dismissed by Judge Amit Mehta.
Google’s court case will begin in mid-September, marking the biggest tech monopoly trial since United States v. Microsoft Corp in 2001. Google is expected to argue that it simply offers a superior product.
Can Bing Challenge Google on Home Turf?
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To answer this question, let’s look at U.S.
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The 25 Worst Stocks by Shareholder Wealth Losses (1926-2022)
The 25 Worst Stocks by Shareholder Wealth Losses (1926-2022)
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Among publicly-listed U.S. companies, the 25 worst stocks have lost shareholders a collective $1.2 trillion since 1926. Put another way, just 0.1% of all stocks have led to 14% of all cumulative losses in shareholder wealth.
In this graphic, we use data from Henrik Bessembinder of Arizona State University to show the worst stocks of the last century.
How Are Shareholder Wealth Losses Calculated?
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Bessembinder took three steps to measure lifetime shareholder wealth losses:
Considered U.S. stocks in the Center for Research in Security Prices database from 1926 (or when the stock was first listed) until 2022 (or when the stock was delisted).Measured share price changes as well as cash flows to/from shareholders including dividends, spinoffs, share buybacks, and new share issuances.Calculated the excess wealth generated compared to investing in one-month Treasury bills over the same time period.If a company exited the database during the period, Bessembinder calculated its delisting return based on any proceeds from mergers or acquisitions as well as estimates of any remaining value after delistings for negative reasons.
The 25 Worst Stocks in Modern History
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With this context in mind, here are the worst stocks since 1926.
WorldCom, number one on the list, was a long-distance phone provider and handled internet data. In response to a surplus of telecommunications capacity that reduced pricing power, WorldCom began “cooking its books” to meet growth targets.
An SEC investigation of the accounting scandal found that executives improperly reduced costs by more than $7 billion and exaggerated revenue by at least $958 million. Once the fraud was discovered, WorldCom filed for the largest bankruptcy filing in American history as of July 2002.
Some of the worst stocks by lifetime wealth losses have gone public within the last few years. For instance, Doordash was one of the largest IPOs in 2020, with investor enthusiasm driving its share price 86% higher in the first day. The company has seen its revenue and U.S. market share increase, but it has yet to produce a 12-month profit.
Common Threads
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Among the worst-performing stocks, there are some patterns.
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Mapped: The Deadliest Earthquakes of the 21st Century
Mapped: The Deadliest Earthquakes of the 21st Century
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On September 8, 2023, a powerful earthquake rocked Morocco. With its epicenter located in the Atlas Mountains and structural damage being done to the historical city center of Marrakesh, the 6.8-magnitude quake will likely have a death toll in the thousands.
With these recent events in mind, we use data from the National Centers for Environment Information (NCES) to map out the epicenters of the nine deadliest earthquakes in the 21st century so far, by their total death toll. This includes casualties from secondary events—like tsunamis—after each earthquake.
Earthquakes By Death Toll (2000–2023)
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We delve into some of the deadliest earthquakes in recent history.
### Haiti, 2010
On January 12th, 2010, a 7.0 magnitude earthquake hit the capital Port-au-Prince. The earthquake’s shallow epicenter—only six miles beneath the surface—caused most of the force to be directed close to where people lived. By the end of the month, after 52 aftershocks rocked the island, the disaster had claimed more than 300,000 lives—the deadliest earthquake in the 21st century thus far.
The extensive destruction led to global support, but slow recovery sparked criticism of government inaction. In 2017, the UN reported 2.5 million Haitians still required aid.
### Indonesia, 2004
December 26th, 2004: A 9.1 earthquake occurred off the coast of Indonesia, deep under the ocean. It was the strongest earthquake in this century and the third-most powerful since 1900.
It triggered the worst tsunami recorded in history, causing 230,000 deaths mainly in Indonesia, Sri Lanka, Thailand, and India.
Here’s a list of the deadliest earthquakes, by death toll, in the 21st century.
### Türkiye and Syria, 2023
February 6, 2023: Two earthquakes, also with shallow epicenters (5 miles deep), hit the border region between Türkiye and Syria, causing widespread damage in both countries and claiming more than 50,000 lives. Bad weather conditions—including snow, ice, and winter storms—inhibited search and rescue efforts.
In Syria, international sanctions prevented foreign charities and families from sending money to the country, which led to the U.S. suspending the sanctions for 180 days.
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Visualizing the Number of Costco Stores, by Country
Visualizing Costco’s Global Presence
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Costco is a membership-based retail chain founded in 1983 in Seattle, Washington. Best known for its unique warehouse stores and high-quality products, Costco offers everything from electronics to groceries.
Since its founding, Costco has become a major retailer in the U.S., while also greatly expanding its international presence. As of August 2023, the company has 859 locations globally, with a split of 69% domestic (591 stores) and 31% international (268 stores).
In this graphic, we’ve visualized Costco’s global presence with a treemap diagram.
Number of Costco Stores Worldwide
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The following table lists the number of Costco stores by country, as of Aug. 17, 2023.
From this data we can see that Costco’s biggest non-U.S. markets are Canada, Mexico, and Japan.
In fact, Costco’s first non-U.S. location was opened near Vancouver, British Columbia in 1985. The company expanded to Mexico several years later in 1992, and then Japan in 1999.
Costco has recently turned its attention to China, opening four stores in areas around Shanghai since 2019. Reception was overwhelmingly positive—as CNBC reported, massive crowds at the grand opening of Costco’s first store forced an early closure. The company is planning to grow its Chinese presence even further, with new locations planned for Hangzhou, Shenzhen, and Nanjing.
For context, Costco is hardly the first U.S. retail chain to break into the Chinese market. Walmart first expanded to China in 1996 with a store in Shenzhen, and as of January 2023, operates 365 stores in the country.
The Sweden and New Zealand locations both opened in 2022, showing that Costco’s international expansion is still very much underway.
Number of Costco Stores by State
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Focusing on the U.S., here are the number of locations in each state.
America’s most populous state, California, leads the nation with 134 locations (23% of total). This is likely due to Costco’s business strategy, which relies more on membership fees and sales volume rather than high markups on products. According to analysis by Forbes, the average markup at Costco is estimated to be 11%, while at Walmart it stands at 24%.
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How Much Does it Take to Be Wealthy in America?
How Much Does it Take to Be Wealthy in America?
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Is it possible to pin down an exact number on what it takes to be wealthy, or is wealth far more complex and nuanced than that?
The above graphic looks at data from the 2023 Modern Wealth Survey by Charles Schwab, which asks respondents what net worth is required to be considered wealthy in America.
Later, we look at data that partially contradicts those findings, showing that wealth is more than just a number for many of those same respondents.
Wealthy in America: A Closer Look
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Overall, the net worth that Americans say that is needed to be “wealthy” in the United States is $2.2 million in 2023.
Here are the average wealth numbers indicated by respondents across 12 major U.S. cities, based on a survey of 1,000 people between 21 and 75:
In San Francisco, respondents said they needed $4.7 million in net worth to be wealthy, the highest across all cities surveyed, and more than double the national average.
This figure dropped from last year, when it stood at $5.4 million. The vast majority of people in San Francisco say that inflation has had an impact on their finances, and over half say that living in the city impedes their ability to reach their financial goals, citing steep costs of living.
In Los Angeles and San Diego, it takes $3.5 million to be wealthy, the second-highest across cities surveyed. In New York, it takes $3.3 million in net worth to reach this target. It is home to over 345,000 millionaires, the highest worldwide.
Houston, where the cost of living is less than half of San Francisco, respondents said a net worth of $2.1 million is needed to be wealthy. The average salary is $67,000 in Houston, while in San Francisco it falls at $81,000.
The Wealth Paradox
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Separately, the survey asked whether respondents “feel wealthy” themselves.
Overall, 48% of all respondents said they feel wealthy, and those people had an average net worth of $560,000. This is a considerable divergence from the $2.2 million benchmark they said was needed to be wealthy.
Here’s the breakdown for major cities, illustrating the paradox:
Millennials were most likely to feel wealthy, at 57% of respondents, while 40% of boomers felt wealthy, the lowest across generations surveyed.
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Visualized: Seaport Trade Traffic by Country
Visualized: Seaport Trade Traffic by Country
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According to the World Bank, global seaport trade traffic reached 841 million TEUs (20-foot container equivalent units) in 2021.
In this infographic, Winifred Amase uses that data to highlight the countries with the highest seaport trade traffic.
China Leads All Seaport Trade Traffic
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With a third of the world’s total seaport trade traffic surrounding its many ports, it’s no surprise to see China on top of the list.
In addition to owning seven of the world’s 10 busiest ports, the country also owns close to 100 ports across 63 other countries. This brought the country’s container traffic up to 263 million TEUs in 2021.
In second place is the United States, which saw container traffic of 61 million TEUs. Massive U.S. ports in Los Angeles and New York are some of the busiest ports on the continent.
Asian countries dominated the rest of the top 10 list, taking up seven of the remaining eight spots.
Singapore came in third with 37 million 20-foot container units passing through in 2021. The port handled 599 million tonnes of freight, making it the busiest single port in total shipping tonnage.
The ports in Dubai and Abu Dhabi make the United Arab Emirates a key player in Middle Eastern trade. With a container traffic of 19 million TEUs, the UAE is seventh on the list of nations with the highest seaport traffic in 2021.
The post Visualized: Seaport Trade Traffic by Country appeared first on Visual Capitalist.
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Charted: Six Red Flags Pointing to China’s Economy Slowing Down
Six Red Flags Pointing to China’s Economy Slowing Down
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The People’s Republic of China is the world’s second-largest economy, responsible for one quarter of global GDP growth this millennium—so when the country catches a cold, the world notices.
The past several months have seen an avalanche of bad economic news for China, putting the country’s post-pandemic recovery, and global economic growth, in jeopardy.
In this visualization, we look at six important indicators that point to China’s economy slowing down. Data comes from the National Bureau of Statistics of China, the People’s Bank of China, and the General Administration of Customs, to see what is flashing red.
Six Red Flag Indicators on China’s Economy
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1. GDPChina’s annual GDP growth rate has averaged 9% since 1978, when the country opened itself up to the global market under Deng Xiaoping.
However, growth seems to have slowed to a crawl, down to 0.8% (quarter-to-quarter) in the second quarter of 2023 driven by weakness in the Tertiary Sector, which includes retail spending and the troubled real estate sector. This follows a more robust 2.2% figure in Q1, which was driven by pent-up demand released by the end of COVID-era lockdowns.
On an annual basis, China’s GDP expanded 6.3% year-over-year, below the forecasted 7.3% rate.
2. ExportsExports fell by 14.5% in July, marking the third straight month of declines, and hitting lows not seen since February 2020. Meanwhile, imports fell 12.4%, reflecting the cautious consumer mood.
On a regional basis, exports fell year-over-year to China’s three biggest customers, ASEAN, the EU, and the U.S., by 17.4%, 15.1%, and 20.8% respectively.
There was one bright spot, however: exports to sanction-burdened Russia increased 51.8%, but that wasn’t nearly enough to offset the overall downward trend.
3. Consumer Price IndexThe consumer price index moved into deflationary territory for the first time since 2021, with prices falling 3% year-over-year. The decline was led by Household Articles and Services, Food & Tobacco, and Transportation and Communications.
At the same time, the prices that producers paid for industrial products (PPI) fell 4.4% (year-over-year), the tenth month in a row with a negative reading.
4.
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Ranked: The World’s Largest Stadiums
Ranking The World’s Largest Stadiums
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From football games to live concerts, stadiums serve as a gathering place for some of life’s most exciting moments.
While some stadiums are famous for their history, others are truly massive in size, capable of seating over 100,000 people at once. In this graphic, we’ve ranked the 10 largest stadiums in the world by seating capacity, with Madison Square Garden included as a reference point.
Data and Highlights
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As shown in the graphic above, the world’s largest stadium belongs to India. Named after the country’s Prime Minister, the Narendra Modi Stadium was designed to host cricket games.
See below for the full list in tabular format.
The number two spot is held by Rungrado 1st of May Stadium, which is surprisingly located in North Korea. It was completed in 1989 with the purpose of hosting the 13th World Festival of Youth and Students, and is now used to host various government events.
It’s interesting to note that this arena initially had a higher capacity of 150,000 people, but was reduced to 114,000 after renovations in 2014.
Looking further down the list, the third to tenth largest stadiums belong to the United States. All of these arenas are primarily used for college football, serving as the home field for their respective university team.
A shocking fact is that these arenas are significantly larger than NFL stadiums. For example, the largest NFL stadium is MetLife Stadium, which has a seating capacity of 82,500.
The Runner-Ups
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While just three countries are represented in the top 10 list, there is plenty of geographical diversity once we look a little further down. Shown below are the 11th to 14th largest stadiums in the world.
Camp Nou and FNB Stadium are two historic soccer stadiums which have both hosted a FIFA World Cup tournament. Camp Nou is owned by FC Barcelona, the world’s third most valuable soccer club.
New Administrative Capital Stadium is expected to replace the Cairo International Stadium as Egypt’s new national arena, and could be used to host the Olympics or a FIFA World Cup in the future if called upon.
The post Ranked: The World’s Largest Stadiums appeared first on Visual Capitalist.
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Decoding the Economics of a Soft Landing
Decoding the Economics of a Soft Landing
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Is a soft landing on the horizon?
So far, the U.S. economy has illustrated unexpected strength, with S&P 500 returns up over 18% year-to-date. A resilient labor market and cooling inflation have improved the odds of the U.S. avoiding a recession, in spite of 11 interest rate hikes since March 2022.
This graphic, sponsored by New York Life Investments, shows three key factors that could impact whether the U.S. achieves a soft landing.
What is a Soft Landing?
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Historically, after a steep rise in interest rates, the U.S. economy often falls into recession.
Still, there have been some exceptions where it avoided a sharp downturn. The most notable example was in 1994-1995, when the Fed raised interest rates seven times in one year without triggering a recession.
Consider the following general definitions:
Soft landing: The Federal Reserve raises interest rates just enough to stabilize inflation. A recession is avoided, or only a minor one occurs.Hard landing: The Federal Reserve raises interest rates too far, excessively slowing the economy and causing a recession.Below, we show the factors having an outsized influence on the health of the U.S. economy today.
1. The Labor Market
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The U.S. labor market is an important indicator of economic health.
In July, there were 1.7 job openings for every unemployed person, highlighting strong demand for workers. In fact, almost 4 million jobs have been added since 2020, recovering the majority of jobs that were lost due to the pandemic.
At the same time, the U.S. unemployment rate remains near five-decade lows, sitting at just 3.5% as of July.
### Why Does This Matter?
Wages have been steadily rising, although not fast enough to significantly impact inflation.With no shortage of job options, this suggests economic strength, supporting a soft landing.2. Inflation
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Inflation has fallen to 3.2% in July, down from a peak of 8.9% seen in June 2022.
We can see in the table below that inflation has been stabilizing, but core inflation, which excludes food and energy, has been declining at a slower pace. The Fed watches core inflation more closely since it is less affected by short-term price fluctuations, and is therefore a better barometer of where prices are headed.
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Charted: Youth Unemployment in the OECD and China
Charted: Youth Unemployment in the OECD and China
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In nearly every country in the world, youth unemployment is much higher than general unemployment.
Unfortunately, the pandemic only exacerbated matters. During a crucial stretch of their early careers, young adults were locked out of entry-level jobs, destroying their ability to pick up work experience and potentially impacting their long-term earnings.
Now, nearly three years after COVID-19 first hit, young adults from some countries, like China, are struggling to find jobs. Using data from the OECD and the National Bureau of Statistics of China, we chart out the youth unemployment rate for 37 countries.
Ranked: Countries With the Highest Youth Unemployment
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At the top of the list, Spain has the highest youth unemployment in the OECD, with nearly one in three young adults unable to find a job.
Unemployed people are those who report that they are without work, are available for work, and have taken active steps to find work in the last four weeks. The youth unemployment rate is calculated as a percentage of the youth labor force.A mismatch between educational qualifications and the labor market has been cited as a significant reason for Spain’s lack of employed adults between the ages of 15–24.
Meanwhile, the country’s reliance on temporary contracts and dependence on seasonal sectors—like tourism—to generate jobs are some of the many reasons for its persistently high reported unemployment across demographic groups.
Listed below is the youth unemployment rate for all the OECD countries, and China, as of the second quarter of 2023.
Announced in June, China’s youth unemployment rate has climbed to 21.3%, a meteoric rise since May 2018, when it was below 10%. The Chinese economy is in the midst of a slowdown and its steadily climbing youth unemployment prompted the government to suspend age-specific unemployment data for the near future.
On the other side of the spectrum, in Japan, only 4.2% of young adults are without a job. A key reason for this is Japan’s shrinking and aging population that’s made for a tight labor market.
Youth Unemployment: Men vs Women
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In most OECD countries, it’s common to see young men experiencing a higher unemployment rate compared to young women.
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Mapped: The Richest Billionaires in U.S. States
Mapped: The Richest Billionaires in Every U.S. State
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The number of billionaires in the U.S. increased 5% compared to last year, going from 720 super wealthy individuals to 775. The richest of the rich are concentrated in states like Texas, California, and New York, but there is almost one billionaire in every single state.
This map uses data from Forbes to showcase the wealthiest billionaire in each state.
The State-by-State Breakdown
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According to Forbes, just four states are home to 61% of the country’s billionaires: California (179), New York (130), Florida (92), and Texas (73).
Here’s a closer look at the data on who takes the title of the richest in each state:
Many billionaires in the U.S. are extremely well-known, such as California’s Larry Page, New York’s Michael Bloomberg, or Washington state’s Jeff Bezos.
Interestingly, Bill Gates doesn’t take the top spot as the richest billionaire in Washington because Bezos has a higher net worth—$149 billion vs. Gates’ $104 billion—although they do live in the exact same town of Medina, WA.
Nearly every state is home to at least one billionaire, some far wealthier than others, like Nebraska’s Warren Buffett ($117 billion), compared to Alabama’s Jimmy Rane ($1.2 billion). Some new states, which gained billionaires this year include Alabama, New Hampshire, and Vermont.
Billionaire Wealth
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The number of billionaires globally is following a different trend than the one in the U.S., declining year-over-year, and seeing billionaire wealth overall decrease by $500 billion.
The U.S. is home to almost 30% of all the world’s billionaires and while a few like Sam Bankman-Fried and Kanye West lost their billionaire status this year, many continue to get richer. In addition to Ron Corio, New Mexico’s first ever billionaire, eight other individuals on the U.S. list gained billionaire status in the last four years.
Finance and investments, food and beverage, fashion and retail, and technology are the top sources of wealth for U.S. billionaires, with almost 50% of them gaining their fortunes from these specific industries.
The post Mapped: The Richest Billionaires in U.S. States appeared first on Visual Capitalist.
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Charted: How Long Does it Take Unicorns to Exit?
How Long Does it Take For Unicorns to Exit?
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For most unicorns—startups with a $1 billion valuation or more—it can take years to see a liquidity event.
Take Twitter, which went public seven years after its 2006 founding. Or Uber, which had an IPO after a decade of operation in 2019. After all, companies first have to succeed and build up their valuation in order to not go bankrupt or dissolve. Few are able to succeed and capitalize in a quick and tidy manner.
So when do unicorns exit, either successfully through an IPO or acquisition, or unsuccessfully through bankruptcy or liquidation? The above visualization from Ilya Strebulaev breaks down the time it took for 595 unicorns to exit from 1997 to 2022.
Unicorns: From Founding to Exit
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Here’s how unicorn exits broke down over the last 25 years. Data was collected by Strebulaev at the Venture Capital Initiative in Stanford and covers exits up to October 2022:
Overall, unicorns exited after a median of eight years in business.
Companies like Facebook, LinkedIn, and Indeed are among the unicorns that exited in exactly eight years, which in total made up 10% of tracked exits. Another major example is Zoom, which launched in 2011 and went public in 2019 at a $9.2 billion valuation.
There were also many earlier exits, such as YouTube’s one-year turnaround from 2005 founding to 2006 acquisition by Google. Groupon also had an early exit just three years after its founding in 2008, after turning down an even earlier acquisition exit (also through Google).
In total, unicorn exits within 11 years or less accounted for just over three-quarters of tracked exits from 1997 to 2022. Many of the companies that took longer to exit also took longer to reach unicorn status, including website company Squarespace, which was founded in 2003 but didn’t reach a billion-dollar valuation until 2017 (and listed on the NYSE in 2021).
Unicorns, by Exit Strategy
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Broadly speaking, there are three main types of exits: going public through an IPO, SPAC, or direct listing, being acquired, or liquidation/bankruptcy.
The most well-known are IPOs, or initial public offerings. These are the most common types of unicorn exits in strong market conditions, with 2021 seeing 79 unicorn IPOs globally, with $83 billion in proceeds.
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Video Game Engagement, by Generation
Video Game Engagement, by Generation
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By 2025, the number of gamers is estimated to reach 3.6 billion and generate a whopping $211 billion in revenue.
The video game industry’s success is fueled by enthusiasts who engage with gaming by playing, viewing, creating, and making gaming a part of their social life. So who are these gaming enthusiasts?
This infographic, sponsored by Roundhill Investments, illustrates how players from different generations around the world engage with video games. Let’s get into it.
The Methodology
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For transparency, the data we used in the graphic above pulls from a survey conducted by Newzoo between February and May 2023 with 74,295 respondents across 36 countries. Here are the age ranges for each demographic according to Newzoo for reference.
Gen Alpha (born 2010 or later / 10-13 years old)Gen Z (born 1995-2009 / 14-28 years old)Millennials (born 1981-1994 / 29-42 years old)Gen X (born 1965-1980 / 43-58 years old)Baby Boomers (born 1946-1964 / 59-65 years old)Generational Insights
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Gaming is the most popular form of video game engagement across all generations surveyed. However, when you dive in to each cohort, some interesting insights emerge.
### Gen Alpha & Gen Z
Of the Gen Alphas surveyed, 93% are video game players. However, both Gen Alpha and Gen Z are also the most likely groups to engage in video gaming in other ways, such as following gaming channels, and participating in online communities. This isn’t surprising, as they have grown up with technology as an integral part of their lives.
### Millennials, Gen X, & Baby Boomers
Interestingly, the percentage of people engaging with these other forms seems to drop with age. So even though just under half of baby boomers with access to the internet consider themselves to be gaming enthusiasts, that refers mostly to playing games, with just 5% of them engaging in other ways.
The Future of Gamingis Diverse
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With younger generations driving the future of gaming, new business models and technologies will continue to emerge to appease these audiences across a multitude of touchpoints and of course, continue to attract attention from brands outside of the industry.
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A Visual Guide to AI Adoption, by Industry
A Visual Guide to AI Adoption, by Industry
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As more and more businesses pour resources into artificial intelligence, its multitude of applications are beginning to be employed by the global workforce—and at a significant pace.
In this graphic, the second in the three-part Digital Evolution series sponsored by Global X ETFs, we’ll explore AI adoption statistics and discuss the impact of AI technology on today’s workforce.
Who Uses AI?
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According to a recent survey, an impressive 50% of organizations report using AI tools for at least one function within their operations. But as we look deeper, the power of AI as a customizable and multi-faceted tool becomes apparent:
Generative AI programs such as DALL-E, Bard, and ChatGPT have also been adopted by significant number of people. In particular, OpenAI’s ChatGPT boasts 100 million users and over a billion monthly hits.
Finance Leads the Way in AI Adoption
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The finance industry has become the frontrunner in AI adoption. Used to manage complex risk challenges, AI algorithms can analyze vast amounts of data in real time, enabling timely detection of fraud and market fluctuations.
Consequently, AI technology has proven to be a game-changer within the risk space. A survey conducted by McKinsey indicates that 48% of professionals in the risk space reported some form of revenue increase as a direct result of AI adoption. Additionally, 43% of respondents reported a decrease in costs, as AI streamlines processes, automates repetitive tasks, and reduces the margin for error.
The Job Market Responds
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The rise in AI adoption has created a demand for AI-skilled professionals in the U.S. In this table, we can see AI job postings as a percentage of overall job postings in the U.S. between 2021 and 2022:
Notably, the top three sectors with the highest demand for AI talent are IT (5.3% of all job postings), professional, scientific, and technical services (4.1%), and finance and insurance (3.3%). This trend suggests that these are the industries where AI can make the biggest difference.
The Transformative Power of AI
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AI adoption has reached a critical milestone, with half of the surveyed organizations leveraging AI tools to optimize their operations in some form. But this is a mere shadow of AI’s true potential.
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Which Climate Metrics Suit Your Investment Goals Best?
Which Climate Metrics Suit Your Investment Goals Best?
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According to PwC, 44% of investors believe that companies should prioritize reducing greenhouse gas emissions across their own operations and supply chain.
In this graphic from our sponsor, MSCI, we break down climate metrics and provide valuable insights to help build sustainability-aligned portfolios without the fear of falling for greenwashing.
Essential Climate Metrics for Investors
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Here are some widely-used climate metrics, as categorized by MSCI:
Choosing the Right Metrics
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Climate investing requires selecting the right measurement tools. For that, it is important to consider your purpose, the applicability, and acceptability of the climate strategy, and the availability of historical data for analysis, among other factors. The infographic above contains a flowchart designed to guide you through several key questions.
For example, do you want to:
Measure your portfolio’s impact on the climate or the climate’s impact on your portfolio?Analyze present or forward-looking data?Assess direct impact or indirect impact via supply chains?Evaluate potential future emissions or projected temperature rise?Focus on climate risks or opportunities?MSCI’s climate metrics toolkit can help investors confidently measure, manage, and report their climate risks and opportunities.
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What Electricity Sources Power the World?
What Powered the World in 2022?
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This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on real assets and resource megatrends each week.
In 2022, 29,165.2 terawatt hours (TWh) of electricity was generated around the world, an increase of 2.3% from the previous year.
In this visualization, we look at data from the latest Statistical Review of World Energy, and ask what powered the world in 2022.
Coal is Still King
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Coal still leads the charge when it comes to electricity, representing 35.4% of global power generation in 2022, followed by natural gas at 22.7%, and hydroelectric at 14.9%.
Source: Energy Institute
Over three-quarters of the world’s total coal-generated electricity is consumed in just three countries. China is the top user of coal, making up 53.3% of global coal demand, followed by India at 13.6%, and the U.S. at 8.9%.
Burning coal—for electricity, as well as metallurgy and cement production—is the world’s single largest source of CO2 emissions. Nevertheless, its use in electricity generation has actually grown 91.2% since 1997, the year when the first global climate agreement was signed in Kyoto, Japan.
Renewables on the Rise
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However, even as non-renewables enjoy their time in the sun, their days could be numbered.
In 2022, renewables, such as wind, solar, and geothermal, represented 14.4% of total electricity generation with an extraordinary annual growth rate of 14.7%, driven by big gains in solar and wind. Non-renewables, by contrast, only managed an anemic 0.4%.
The authors of the Statistical Review do not include hydroelectric in their renewable calculations, even though many others, including the International Energy Agency, consider it a “well-established renewable power technology.”
With hydroelectric moved into the renewable column, together they accounted for over 29.3% of all electricity generated in 2022, with an annual growth rate of 7.4%.
France’s Nuclear Horrible Year
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Another big mover in this year’s report was nuclear energy.
In addition to disruptions at the Zaporizhzhia nuclear power plant in Ukraine, shutdowns in France’s nuclear fleet to address corrosion found in the safety injection systems of four reactors led to a 4% drop in global use, year-over-year.
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Visualizing Mining’s Footprint in British Columbia
Visualizing Mining’s Footprint in British Columbia
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British Columbia is considered a global leader in the development of socially and environmentally responsible resources.
An estimated 54% of the province’s total land is protected, making it one of the world’s greenest mining hubs.
This graphic by the B.C. Regional Mining Alliance (BCRMA) details mining’s footprint in the province.
A Tier 1 Jurisdiction for Mining
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British Columbia covers almost 95 million hectares (234 million acres), more than any European country except Russia, and more than any U.S. state except Alaska.
As the largest mining province in Canada, BC registered $18 billion in revenue from the industry in 2022.
British Columbia stands as Canada’s sole producer of molybdenum, which finds applications in metallurgy and chemistry. Additionally, B.C. is the country’s leader producer of copper and steelmaking coal, besides gold and silver.
At the heart of British Columbia’s mining industry lies the Golden Triangle, one of the hottest mineral exploration districts in the world.
More than 150 mines have operated in the area since prospectors first arrived at the end of the 19th century. The region alone is endowed with minerals worth more than $800 billion.
How Green is B.C. Mining
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Mining represents 7% of the province’s Gross Domestic Product (GDP), despite only accounting for 0.04% of the land use. In comparison, farmland demands 3% of the land, bringing $2.1 billion (0.8%) per year.
Mining operations are also supported by a stable, transparent, and effective policy environment. The province ranked as the world’s least risky for mining in 2017 and 2018.
In addition, mineral exploration has received ample support from local Indigenous communities. Today, mining accounts for over two-thirds of all indigenous people employed in the extractives sector.
According to the International Energy Agency, up to six times more minerals and metals will be needed by 2040 to accelerate the energy transition.
In this scenario, British Columbia is well positioned to support the transition to a low-carbon future and make a significant contribution to climate action.
The BCRMA is a strategic partnership between indigenous groups, industry, and government representatives that aims to promote B.C.’s mining opportunities internationally.
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Ranked: Which Countries Drink the Most Beer?
Visualizing Global Beer Consumption
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Global beer consumption exceeded 185 million kiloliters in 2021, enough to fill more than 74,000 Olympic-sized swimming pools.
So, which countries drink the most beer?
This graphic uses data from Kirin Holdings to compare global beer consumption by country. The Japanese company has been tracking beer consumption around the world since 1975.
Which Countries Drink the Most Beer?
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Every region in the world increased its overall beer consumption in 2021 compared to 2020, with global consumption rising by 4%.
Asia holds a 31% share of the global beer market, remaining the world’s largest beer-consuming region over the last 14 years.
China was the largest beer-consuming country for the 19th consecutive year.
The tradition of brewing and enjoying beer in China spans approximately nine millennia. Recent archaeological discoveries have revealed that as far back as 7000 BC, ancient Chinese communities were engaged in producing beer-like alcoholic beverages, primarily on a small and localized basis.
China was also the leading producer of beer in 2022, followed by the United States.
Beer Consumption Per Capita
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When examining per capita beer consumption, Asia falls behind Europe. In fact, nine of the top 10 consumers of beer per capita are European nations.
The Czech Republic remains the leader in per capita beer drinking for the 29th year. In 2021, the average Czech drank more than 184 liters of beer.
The Czech Republic is known for its affordable beer. In some parts of the country, beer can even cost less than bottled water.
Small Brewers and Technology
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Beer production is expected to rise over the next decade, boosted by new smaller brewers, particularly in Western countries.
Investments have also been made in new technology to expedite the brewing process, including the utilization of ‘BeerBots’ capable of accelerating the fermentation process.
According to Future Market Insights, the global beer market is projected to be valued at $690 billion in 2023, rising to $996 billion by 2033.
The post Ranked: Which Countries Drink the Most Beer? appeared first on Visual Capitalist.
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Visualized: How Much Metal is Used in Clean Energy Technology?
How Much Metal is Used in Clean Energy?
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In 2022, a record 12% of all global power was harnessed from solar and wind, up from 10% in 2021, underscoring the growth of clean energy sources.
Essential minerals that form the foundation of clean energy technologies are at the heart of this transition. But what makes these minerals so indispensable?
This infographic, sponsored by Teck, looks at how much, and what types of metals are used in clean energy.
Clean Energy Uses More Metal
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Clean energy systems, on average, require more minerals to build. Let’s take a look at the amount needed for wind and solar applications.
Offshore wind uses the largest amount of metals here, with its copper demand alone reaching around 8,000 kilograms per megawatt of energy.
### A Closer Look at Copper
Copper is the world’s third most used industrial metal and is essential for clean energy technologies due to its outstanding conductivity, versatility, and superior heat dissipation capabilities compared to other metals.
Copper’s sustainability credentials are also firmly established. This is due to its recyclability rate of 100%, meaning it can be reused multiple times without any decline in performance.
Growing clean energy infrastructure will place even more significant demands on copper. A wind farm can contain between 4 million and 15 million pounds of copper.
### A Closer Look at Zinc
Zinc is renowned as one of the most versatile and vital elements in human applications. It stands as the fourth most used metal worldwide, following iron, aluminum, and copper.
Its primary application is in the galvanization process, where it acts as a protective layer for iron and steel against corrosion.
Zinc coatings play a crucial role in public transportation and infrastructure by extending the life of steel used in bridge rails, support structures, railway tracks, and more.
The construction of solar panels and wind turbines has resulted in additional demand for zinc because these assets are always exposed to the elements.
A 100MWh solar panel park—capable of powering 110,000 homes—needs 240 tonnes of zinc.
Metals for the Future
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As the world moves towards renewable energy sources, copper, and zinc will remain in high demand.
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Mapping the $158 Billion Impact of Online Travel Agencies
Mapping the $158 Billion Impact of Online Travel Agencies
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Before the first online travel agency (OTA) came online in 1994, booking a vacation would likely have involved a visit to the local travel agent, where you’d pour over guide books and flight catalogs.
OTAs are web-based marketplaces that connect travelers with vendors, like airlines and hotels. And while we have all benefited from the added convenience they’ve provided, what effect have they had on prices?
In this visualization, for our sponsor Booking.com, we look at the massive impact of online travel agencies in countries around the world.
Adding up the Savings
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Can you imagine a world without OTAs?
Well, Oxford Economics did just that for Booking.com to quantify the impact of digital platforms on the travel and tourism sector. Researcherscompared two models, a baseline case that captured actual prices between 2019 and 2021 and an imaginary world where OTAs didn’t exist. The report selected individual countries based on data availability, representativeness, and overall size of the tourism market.
Between 2019 and 2021, consumer savings in the 27 individual countries in Europe, APAC, and North America considered here totaled $158 billion. We calculated total savings by multiplying the number of room nights per country and the savings to the average daily rate, a key industry price metric.
Given the sheer size of the U.S. market, travelers there reaped the most savings from OTAs, $49.8 billion between 2019 and 2021. However, if you were to count the 17 European countries together as one bloc, their three-year total comes out ahead at $69.4 billion.
The top 10 contains recognizable travel destinations across Western Europe in addition to the U.S. and Canada. Two Asia Pacific countries also made the cut: Thailand with its stunning beaches and islands, and Japan with its rich cultural heritage.
More Bookings, More Savings
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The more rooms booked through OTAs in a given market, the greater the overall savings.
For example, in Europe, during 2019 to 2021, OTAs accounted for 23.7% of room-nights booked, which translated into a $9.94 average reduction per night. In Asia, where only 12.8% of rooms were booked via OTAs, prices fell by $4.00 a night on average.
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The 25 Best Stocks by Shareholder Wealth Creation (1926-2022)
The 25 Best Stocks by Shareholder Wealth Creation (1926-2022)
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Out of 28,114 publicly-listed U.S. companies analyzed over the last century, the 25 best stocks have created nearly a third of all shareholder wealth. Put another way, just 0.1% of stocks have added over $17.6 trillion to investors’ wallets.
In this graphic, we use data from Henrik Bessembinder of Arizona State University to show the best stocks of the last century.
How is Shareholder Wealth Creation Calculated?
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Bessembinder took three steps to measure lifetime shareholder wealth creation:
Considered U.S. stocks in the Center for Research in Security Prices database from 1926 (or when the stock was first listed) until 2022 (or when the stock was delisted).Measured share price changes as well as cash flows to/from shareholders including dividends, spinoffs, share buybacks, and new share issuances.Calculated the excess wealth generated compared to investing in one-month Treasury bills over the same time period.If a company exited the database during the period, Bessembinder calculated its delisting return based on any proceeds from mergers or acquisitions as well as estimates of any remaining value after delistings for negative reasons.
GM is the only company within the top 25 to be delisted prior to December 2022. Its second IPO in 2010 was considered a new company and not continuous wealth creation.
The 25 Best Stocks in Modern History
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With this definition in mind, here are the best stocks since 1926.
Apple takes the top spot, having created nearly 5% of all shareholder wealth. From the iPod to the iPhone, Apple’s ability to keep innovating has helped it gain a loyal fan base and given the company pricing power. Notably, Apple is America’s most profitable company.
ExxonMobil is the only non-technology company among the five best stocks. When Exxon and Mobil merged in 1999, it was the biggest merger in history and ExxonMobil temporarily became the world’s largest public company by market capitalization. More recently, the company experienced record profits in 2022 due to high oil prices.
The list also shows how wealth-generating patterns have changed over time.
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Charted: Most Popular U.S. Undergraduate Degrees (2011–2021)
Charted: Most Popular U.S. Undergraduate Degrees (2011–2021)
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In an era of soaring tuition fees and mounting student debt, choosing which undergraduate degree to pursue has become a crucial decision for any aspiring college student. And it always helps to see which way the winds are blowing.
This visualization by Kashish Rastogi, based on data from the National Center for Education Statistics (NCES), examines the changing landscape of undergraduate degrees awarded between the 2010–2011 and 2020–2021 academic years.
Undergraduate Degrees Growing in Popularity
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The NCES classifies all four-year bachelor degrees into 38 fields of study. Of these fields, 21 saw an increase in graduates in 2020–2021 compared to 2010–2011.
While only those with more than 30,000 graduates have been shown in the graphic (to prevent overrepresentation of large changes in small pools of graduates), the full list is available below.
Note: Field of study names have been edited slightly from their NCES labels for better readability.Let’s take a look at the areas of study that were most popular, as well as some of the fastest growing fields:
Computer and Information SciencesBachelor’s degrees in this discipline have grown by 144% since 2010–2011, with over 100,000 graduates in 2020–2021. The allure of the tech sector’s explosive growth likely contributed to its popularity among students.
Health ProfessionsUndergraduate degrees in health professions saw an 87% increase, attracting nearly 260,000 graduates in 2020–2021. This field accounted for 13% of the total graduating class, reflecting the growing appeal of the healthcare sector.
EngineeringThere were 50,000 more engineering graduates in the U.S. in 2021, up 65% from 2011. With a median income over $100,000 per year, engineering graduates can usually rely on good wages as well as versatility in future careers, capable of finding jobs in tech, design, and communication fields, and of course, becoming future entrepreneurs.
Biomedical SciencesUniversity graduates in this field, which focuses on the integration of the study of biology with health and medicine, grew by 46%. A subset of this category—epidemiology—has been in the limelight recently thanks to the COVID-19 pandemic.
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Where Do International Students in the U.S. Come From?
Where Do International Students in the U.S. Come From?
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The proportion of international students in U.S. higher education institutions has increased steadily, from 1.5% of the country’s total students in the 1960s to 5.5% in the early 2020s.
Using 2022 data from the International Education Exchange (IIE), this visualization from Ehsan Soltani breaks down where these students come from.
The International Student Population
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The United States has always attracted students seeking quality education at its many world-class universities and opportunities in the country’s job market.
After a drop in recent years due to COVID-19 restrictions, American institutions registered a 3.8% increase in international student participation in 2022.
There were 948,519 international students at U.S. colleges and universities last year.
Asian students represent 75% of the total, with Chinese (30%) and Indians (21%) adding up to over half the count. Oceania is the place of origin with the fewest international students enrolled in the U.S., making up only 0.6% of the total.
According to Open Doors, for the first time in a decade, there were more graduate students (41%) than undergraduates (36%) studying in the United States in 2022.
Since the COVID-19 pandemic, many colleges and universities have started to offer online courses. Still, the vast majority of students attended classes in person last year.
A Billionaire Business
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International students continue to be a priority for the U.S. higher education sector, contributing $32 billion to the country’s economy in 2022.
With the demographic decline in U.S. domestic higher education enrollment, many colleges and universities are strategically focusing on international students.
According to IIE, 89% of U.S. colleges and universities indicated that 2023/24 applications are up or have stayed the same as the previous year.
The post Where Do International Students in the U.S. Come From? appeared first on Visual Capitalist.
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The Monthly Cost of Buying vs. Renting a House in America
The Monthly Cost of Buying vs. Renting a House in America
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With home prices and mortgage rates both rising, the U.S. is now witnessing the biggest numerical gap in the monthly cost between owning a home and renting in over 50 years.
Americans, however, have seen similar scenarios occur since the early 1980s.
Today’s chart uses data from Reventure Consulting to highlight the cost of buying vs. renting a single-family residence in the U.S. since 1970, adjusted for inflation.
Mortgage Rates Jump to New High
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In August 2023, mortgage rates rose to the highest level in 23 years, with the national average 30-year fixed mortgage hitting 7.48%.
As a result, the median rent in America is approximately $1,850 per month, about 30% cheaper than the median cost to buy, standing at $2,700 per month. This gap represents the largest difference between renting and buying in U.S. history.
While the difference was less than $200 in 2022, in 2023 the gap surpassed $800.
Many buyers, particularly those seeking their initial home purchase, have now been priced out of the market with concerns that they cannot afford home ownership. As a result, mortgage applications for home purchases have hit their lowest point in 20 years:
Rent costs have also seen an uptick, but not at the same pace, as the market adjusted following a steep rent spike witnessed during the pandemic.
Will Mortgage Rates Drop in 2023?
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Increases in interest rates affect long-term home loans, such as 30-year fixed-rate mortgages. And starting in 2022, the Federal Reserve began to hike rates from their near-zero level to the current range of 5.25-5.5%.
Recently, the Federal Reserve unveiled new projections, indicating that the interest rate could potentially reach 5.6% by the end of 2023, implying at least one more rate hike in 2023.
As a result, numerous experts are anticipating that mortgage rates will likely remain above 6% for the rest of this year.
The post The Monthly Cost of Buying vs. Renting a House in America appeared first on Visual Capitalist.
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The Video Game Industry: Insights for Investors
The Video Game Industry: Insights for Investors
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Newzoo indicates that 79% of the total online population engages with video games. However, even those who don’t play can benefit from investment opportunities in this thriving industry.
This infographic, sponsored by Roundhill Investments, delves into the growth of the gaming industry and related financial opportunities.
Video Gamers, by Region
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Video gaming platforms were home to 3.2 billion gamers around the world in 2022, and the number is projected to reach 3.5 billion by 2025, according to Newzoo.
However, this growth varies across regions.
Also, due to ease of access and low barriers to entry, mobile gaming is the most popular segment, generating almost three-quarters of the revenue.
Video Gaming Industry, by Revenue
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The inherent resilience of the gaming industry was evident during the COVID-19 recession.
During that period, the launch of many eagerly awaited games experienced delays, and many of those are now being released in 2023 and 2024.
Consequently, these years are poised to be the industry’s best yet. According to PwC, it is projected to generate $257B in 2023, and at a CAGR of 8.4%, it will cross $320B by 2026.
Exploring Investment Opportunities
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In the video gaming industry’s dynamic landscape, investors can gain from investing in the industry’s major players. Here are some prominent ones to be aware of across certain gaming sectors.
Gaming software companies: Electronic Arts, Ubisoft, and Take-Two Interactive.Integrated gaming hardware & software companies: Nintendo and CD Projekt.Mobile gaming companies: Kakao Games, NetMarble, and Rovio.Gaming infrastructure & platform companies: Unity, Roblox, and AppLovin.Roundhill Investment’s video gaming ETF makes it easy for investors to get exposure to many leading video game companies and AAA game publishers worldwide, including the ones listed above.
Overall, given the expansive and varied demographic, coupled with minimal entry barriers and swift innovation, the video games market is considered hold a lot of potential for investors over the coming years.
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Visualizing the World’s Growing Millionaire Population (2012-2022)
Visualizing the World’s Growing Millionaire Population
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Reaping the rewards of tech revolutions, market booms, and more, the last decade has seen a remarkable increase in the global number of millionaires.
In 2022, 1.1% of all of the world’s adults were millionaires, up from 0.6% in 2012.
In today’s visualization, we dive into the world’s growing millionaire population using data from this year’s Global Wealth Report by Credit Suisse.
The Global Millionaire Population, Then and Now
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In 2022, total millionaire wealth stood at $208.3 trillion, accounting for 45.8% of global wealth. That represents a 138% increase from 2011, when millionaires held $87.5 trillion in wealth.
While the rise can be attributed to a number of factors, financial assets have accounted for most of the increase in total wealth since the 2008 Financial Crisis, according to Credit Suisse.
Here’s a look at the explosive growth in the number of millionaires from 2012 to 2022:
At the very apex of these pyramids, the number of ultra-high-net-worth individuals (all holding $50 million or more in wealth) has nearly tripled over the last decade.
Where are the world’s millionaires mostly found?
42%: North America27%: Europe16%: Asia-Pacific (ex. China and India)10%: China5%: Rest of the WorldIn total, the world’s millionaire population amounted to 59.4 million adults in 2022.
Despite inflation, interest rates, and current market conditions hampering wealth creation for many in 2022 and 2023, Credit Suisse forecasts that the number of millionaires will still grow to 86 million by 2027, a 45% increase from 2022.
The Outlook for Wealth Inequality
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Although wealth inequality fell slightly in 2022, a significant chunk of overall global wealth still belongs to the wealthiest parts of the population.
In stark contrast to millionaires, 52.5% of the world’s adults had less than $10,000 in wealth, and combined for just 1.2% of global wealth.
From a big picture perspective, however, worldwide wealth inequality has trended downward over the last two decades. That is, before the 2020–2021 period when the wealth gap was exacerbated due to the pandemic and the subsequent boom in share and house prices.
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