In today's Wall Street Journal, writer Robert Frank discusses what "The Year Ahead in Wealth Will Mean." The key paragraphs:

Aside from becoming more numerous, the rich will also get richer. America’s richest 1% controlled $16.7 trillion of total wealth as of 2004, the latest period for which numbers are available. That total wealth could top $20 trillion by the end of 2007.

and

The rising population of rich people will continue to spawn new products and services aimed at the top. The so-called luxury world, once a tiny sliver of the consumer market, is now a vast marketplace.From fine art and collectibles to Palm Beach mansions and yachts, high-end baubles will continue to proliferate in 2007. Look for new price records to be set for art (a $150 million painting?) and real estate (a $100 million home?). Yachts will get longer, houses will get bigger and private jets will get faster.The inflation rate for the wealthy will also continue rising faster than the broader consumer price index. Why? There are simply more rich people, so there’s more demand. Prices for the things purchased by financial millionaires (those with $1 million or more to invest) rose 4% in 2005, compared with 3.6% for the national CPI. Look for that difference to widen further in 2006, as the wealthy continue to spend at a faster and higher rate than the rest of the population.

On Maui we are starting to see a difference in price movements between the top-end oceanfront properties and everything else. The above point of view helps to explain why.

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