Gold remains a symbol of security. (source: TASR/AP)
Slovak dollar millionaires recorded the fastest pace of growth of their wealth in 2023. The main source of their wealth remains business income, which they supplement with investments in shares of foreign companies and private equity. There is also a renewed interest in real estate and building plots, reflecting the current trend of falling interest rates.
The average Slovak dollar millionaire remains a 53-year old man while an economically active owner of an enterprise, the latest J&T Bank Wealth Report 2024 shows. The aim of the report is to map the investment behaviour and lifestyle of dollar millionaires: people whose disposable wealth is at least $1 million.
Slovak millionaires confirm their ability to adapt to changing economic conditions.
“In addition to doing business, which continues to remain the pillar of their source of wealth, they perceive opportunities in dynamic investment instruments such as shares and private equity, which offer them the possibility of long-term growth and the opportunity to invest with the business elite,” said Anna Macaláková, director of J&T Banks, said at a press conference on November 26, as cited by the SITA newswire.
Gold remains a safe haven
More than 53 percent of Slovak millionaires still consider stocks of foreign companies as the most attractive investment opportunity for the coming period. In second place are private equity investments, mentioned by 34 percent of respondents, reflecting their interest in long-term projects with higher growth potential compared to equities.
Alongside rising yields, gold remains a symbol of security. During the Covid-19 pandemic and a period of high rates, gold was always a store of value, according to Macaláková. But with the current sharp rise in gold, an increasingly expensive dollar has jumped to relatively high rungs of interest.
On the other hand, investors are moving away from time deposits and bonds. Renewed interest in residential real estate and building land also shows that millionaires can seize opportunities, offered by falling interest rates.
Compared to previous years when interest in this area became subdued, decreasing interest rates have now taken care of its return to the fore.
“Falling interest rates and the stabilisation of demand for housing have returned property and building plots to the attention of Slovak millionaires,” said Macaláková. “They see in them not only an opportunity for property appreciation, but also protection against inflation.”
Most Slovak millionaires report wealth growth
Up to 82 percent of Slovak millionaires surveyed said that their wealth has increased in the last year, thanks to income from doing business and successful investments. The stabilisation of the economic situation and positive developments on the financial markets have contributed to the significant accumulation of wealth. Even 27 percent declare that their wealth has increased by more than 10 percent in the last twelve months.
When it comes to future outlook, millionaires in Slovakia are optimistic about the development of their wealth. As many as 76 percent expect it to grow further in the next year. In addition to financial goals, they are increasingly focusing on long-term value-added projects, including investments in education, healthcare and environmental initiatives.
