The verdict is in — because of COVID-19, the rich could get much richer, and the poor even poorer.

A team of financial analysts from New Zealand are calling this the biggest shake-up in global wealth that we’ve seen since the Great Recession of 2008. They have critical predictions on what might happen next.

Simon Angelo, Chief Executive at Wealth Morning, believes that most people don’t fully understand the scale of this event. When interest rates in the banks collapse to 1% or less, they will realise there’s no money to be made in cash or deposits. This will encourage them to venture beyond. Simon warns: ‘Already, the coronavirus sell-off has sent many investors and a huge cash pile into money-market funds. There’s now more money sitting on the sidelines, ready to go into the markets, than there was during the Global Financial Crisis.’

John Ling agrees. He regularly speaks to investors who come from all walks of life — farmers, business owners, retirees. They have all expressed plans to move their money out of term deposits and into stocks. ‘When capital moves so quickly like this, the wealth gap will only get bigger.’

The truth is stark: invested capital may grow faster than traditional sources of income. It’s already happened before. From 2009 to 2020, the S&P 500 stock index grew 365%. The lion’s share of that growth was captured by the few who owned stocks.

Simon believes we may see history repeat itself again. ‘This is not the time to be afraid of stocks. In my opinion, it’s time to ask yourself whether you have the courage not to miss out again.’

Simon, John, and the rest of the Wealth Morning team are actively researching new and emerging opportunities beyond the radar. They are New Zealand’s largest independent publisher of specialist investment and financial news — with a strong focus on looking beyond COVID-19 and understanding the most decisive global trends that will make the biggest difference to wealth.

They have produced an exclusive interview — The Wealth Gap: Are You Losing Your Financial Freedom? — where they discuss in detail why this is happening and what the consequences may be.

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