The Wealth of Nations in the 21st Century

Countries with rising median wealth and post-crisis corporate reforms, especially Japan and South Korea, could outperform their current wealth rankings in the years ahead.

• UBS reports average wealth per adult of $910,382 in Switzerland and $696,277 in the United States, but US median wealth is only $68,998, ranking 28th globally.
• Australia ranks fifth by average wealth at $616,306 and third by median wealth at $210,783, nearly three times the US median.
• Wealth per adult has fallen 23% in the UK and 14% in the Netherlands this decade, while it has risen 37% in Russia and 63% in South Korea since 2020; the author cautions that non-OECD data may be less reliable.
• Japan's average wealth has increased 10% this decade and its median wealth 50%, whereas South Korea's average wealth rose 63% but its median wealth only 10%.
• Japan's post-war salaryman model and cross-shareholdings contrast with South Korea's family-controlled chaebols, which are being pushed toward greater transparency and accountability to investors.

Takeaway: Investors should expect Japan and South Korea to become significantly wealthier as their financial disasters recede and corporate models evolve, although highly valued stock markets elsewhere could still face prolonged shakeouts.