Despite its reputation as the weakest economy in the world today, Europe is the preferred overseas investment destination for millionaires from all over the world. Respondents to a survey by the Spectrem Group voted strongly in favor of Europe as their preferred investment region in the world.
19% of all respondents preferred Europe while China came next with support from 15% of the respondents. Canada and the UK were ranked next with 12% and 9% while the fifth position was jointly occupied by Brazil, Australia, Japan, and India with support from 8% of the respondents.
Comparison with the 2011 survey shows a marked shift in the preference of investors. In 2011, China was the top investment destination with 21% support followed by Brazil with 20% support. Europe was ranked third and was preferred by just 12% of the respondents.
The 2014 survey sought the opinions of 1465 individuals who had investible assets between $1 million to $5 million.
So, what makes a region suffering from strong deflationary trends, volatile stock markets, and ever-present fears of another recession enjoying the support of so many millionaires? The President of the Spectrem Group opines that Europe’s political stability and the hands-off approach of its governments towards the economy makes it a much safer bet as compared to investment destinations like China and Brazil.
Emerging markets invariably suffer from excessive government and regulatory intervention in economic matters, a risk virtually absent in Europe. The view is that despite not being an attractive option, Europe is probably the least unattractive option amongst overseas investment destinations in the world today.