This is one of the more illuminating reports available at the moment. It is an important and easily digestible discussion of HNWI (high net worth individual) migration patterns in 2015. What qualifies for this threshold is always evolving with the FRB’s printing press, though by most definitions it applies to those with a seven-figure net worth excluding the net value of their primary residence.
As an aside, I’ve always noted a sizable loophole in this metric. A man who doesn’t have a nickel for chicken wings, but owns Mar-a-Lago unencumbered is demonstrably much wealthier than another in an apartment with $20 grand stuffed in his couch. But that’s a quibble.
There’s obviously multiple reasons why migration patterns of the monied are more telling than those of Honduran squatters. One group has global vision and the financial latitude to act on it, while the other is just dumbly trudging north. So let’s observe the most perspicacious rats in flight.
The top recipient cities in descending order of raw millionaire inflows for 2015 are as follows:
We’ve previously discussed the moating of the latter, and Israel’s border control is the stuff of xenophobic legend. Though what’s Australia’s attraction? Apparently Operation Sovereign Borders smells a lot like cheese. This piece from 2015 describes the aroma.
Lieutenant General Angus Campbell said there had been no successful boat arrivals in Australia for six months.
Lieutenant General Campbell said only one vessel had arrived in Australia in 2014 and all those aboard that vessel were transferred to Nauru.
Not one landed boat since 2013. 😎 Ahh how the view from Sydney harbor must remain unsullied.
Of course Aussie readers may point out how their legacy population is being betrayed otherwise, but we are talking about the migration of wealth. And such personalities are less inclined to avoid rich Asians than they are to shriek for third-world rights from a very safe distance.
The notes were as interesting as the numbers:
* Sydney, Melbourne and Perth all benefitted from millionaire inflows from China, Europe, the UK, USA and South Africa. Other Australian areas such as the Gold Coast, Brisbane, Noosa and the Sunshine Coast also experienced inflows.
* Tel Aviv had large inflows from Europe, especially France. Other Israeli cities such as Herzliya, Jerusalem and Netanya also experienced inflows.
* San Francisco, Seattle and Vancouver all experienced large millionaire inflows from China and South East Asia.
* Dubai saw strong inflows from North Africa (Egypt, Algeria, and Morocco) and Turkey.
French Jews escaping their Muslim mess; Europeans scuttling down under; and Asia colonizing the West Coast.
London’s situation was equally interesting:
London experienced a net inflow of around 500 millionaires in 2015. This was low compared to recent years as a number of millionaires left the city in 2015 (around 3,000 came in and 2,500 left).
Many of the 2,500 that left moved to other parts of England, mainly to small towns in the London commuter belt along the Thames (such as Maidenhead, Beaconsfield, Bray, Cookham and Marlow). A large number also moved overseas, mainly to English speaking countries such as Australia, Canada, New Zealand and USA.
Of interest, most of the millionaires that left London were UK born whereas almost all of the millionaires that came into the city were from other countries.
This may be a trend that continues in future as several wealthy UK born people that we spoke to said they were concerned about the way London and the UK in general had changed over the past decade or so. Australia seems to be their preferred destination.
Note how the local money is being replaced by foreign. And that wealthy Londoners are vexed enough to move watching their ancient city transform into Karachi. Though that concern was never so vivid as to animate any resistance to it. You simply extract the capital and GTFO. Dealing with radioactive aftermath is a little people’s problem.
So now we know the to, but where are they absconding from? The cities with most lost millionaires in 2015 are ordered as follows:
The City of Lights? Why would would wealthy people leave there? Maybe we can ask some of the locals.
Or maybe the rich can speak for themselves.
We interviewed migration experts and HNWIs to find out on their reasons for leaving. Notable reasons that they mentioned included:
* Paris: Rising religious tensions, lack of opportunities.
* Rome: Economic slump, lack of opportunities.
* Chicago: Rising racial tensions, rising crime levels.
* Athens: Economic slump, migration crisis with Syria/Turkey.
The large outflow of millionaires from France is notable – France is being heavily impacted by rising religious tensions between Christians and Muslims, especially in urban areas.
We expect that millionaire migration away from France will accelerate over the next decade as these tensions escalate.
In our view, other European countries where religious tensions are starting to emerge such as Belgium, Germany, Sweden and the UK will also be negatively affected in the near future.
As always, man lies about diversity with his tongue while speaking the truth with his feet. And that truth is going to be spoken with increasingly loud footsteps.
Countries with sufficient foresight to eschew the tensions of migration are going to be the future recipients of significant human capital, as those with means seek relief from the results of their own delusions. This is taking the form of Australia and the PacWest today. Tomorrow it will be Prague, Warsaw, and Budapest.
It is not where is great, but where is better. And as the West grimly lowers that bar on its own head, the rodents always find higher ground.