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Investor Status
05 Oct 2011 by Bob Adams in Statistics / 1 Comment
This is one graph that speaks for itself, very simply and very clearly. The shift from self-identified non-investors to investors could not be clearer.
In one sense, it is not especially surprising during this time of financial crisis in the US. It might be expected that Americans who identify themselves as “investors” have more substantial financial resources available for relocation than non-investors. Although you certainly do not have to be rich to relocate to another nation, it is still cheaper and easier just to pack your bags and travel to another part of the US.
Those Americans who have never thought of relocation outside the US are obviously not candidates for relocation. Perhaps investors, who more and more frequently purchase stocks, bonds, commodities and other financial instruments that are global or non-US in nature, are more likely to think in “global” terms when it comes their own residency than those who do no such investing. Investors may be “following their investments”.
And of course, some may argue that this means “the wealthy are fleeing the country” in rejection of economic policies in the US. Well, perhaps some are, but the wealthy are not so large in number that they could explain a shift as great as this. And, as our income group statistics make clear, relocation is not at all limited to wealthy people.
Middle-class Americans have become very active in investment and speculation over the last few decades. By definition, they are not wealthy. Their parents might have referred to their primary investment in the past as their “nest egg” and not considered themselves to be investors, per se. With the wide-spread adoption of on-line trading and the huge increase in various investment possibilities in recent years, their adult children today may now see fit to call themselves investors with investments, leaving behind “nest egg” as an out-of-date term.
In all cases, not just this one, it is important to take all the various variables into consideration (marital status, income, education, etc.) and not assume that one variable alone can describe a relocator. However, given that non-investors have only returned to their 2007 level while investors have tripled, there is no doubt that this variable is one of those making a significant contribution to 2011′s higher relocation totals.
About the Author: Bob Adams
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1 Comment
John Hunter
Very interesting trend. I wonder how much of it can be explained by investors wanting to get a deep understanding of very promising markets. I wouldn’t image the actual number that do this is huge, but maybe the number considering it is significant. Read some of Ji m Rodgers discussion on this topic – he moved to Asia because he sees Asia as key to the future.
In general frustration with the USA has grown greatly in the last few years. This surprised me (how quickly attitudes are changing). But the trend for moving overseas does not. I believe this is a long term trend that will continue – especially for “knowledge workers.”
The USA rested on the post WW II economic domination for nearly 50 years. The policies also helped this continue (investing in science and engineering) favoring entrepreneurship… But other countries have realized the value of these things (and the USA is slipping – not investing nearly as much in science and engineering and favoring large corporations that give politicians large amounts of cash over innovation – see things like the incredibly outdated patent system, SOPA, favoring huge financial institutions…
The combination of long term policy weakness, the inevitable decline in the USA to world ratio of economic wealth, and the financial crisis caused by the policy weaknesses have seemingly greatly accelerated the trend. The next 2 or 3 years will determine if that is a permanent acceleration or if we go back to a slower pace – but on the same path. My guess is that we will stay on this path but the pace will not follow the level surveys might indicate (showing interest in such a big change is far different from actually moving).
07 Dec 2011 08:12 pm (@curiouscat_com)
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