A tale of two wealth classes (see where you fall)… Teeka debunks a frightening market headline making the rounds… Bob shares the fastest way to gain control and relief in life… And a subscriber doubts our Chinese currency call…

  One chart shows where you’re at in the wealth hierarchy—and how to change your position

The thought-provoking Wall Street Journal chart below shows all you’ll ever need to know about the investment habits of the rich… and everyone else.

The data comes from a 2014 study by economist Edward Wolff. It reveals the wealthiest 1% of Americans hold 63% of private business equity in America. (Think of companies like ours, PBRG, that don’t trade on stock exchanges.) The country’s top 10% hold 94% of business equity.

Compare that to the bottom 90% of Americans… whose only majority-owned asset (at 59%) is their own home.

Consider the difference in these two asset classes…

The former (business equity) is a cash-flowing asset that kicks off consistent (and often growing) income streams. It puts more and more money in your pocket over time.

The latter (one’s own home) is “dead weight.” It relies on price appreciation for any gains. And those gains are only realized through selling or refinancing (i.e., “using your house as an ATM”—something that got tens of millions of Americans into trouble during the last housing bust).

Plus, most Americans purchase their homes with a 30-year loan. That means they often end up paying at least 100% more than the actual purchase price in mortgage interest (and private mortgage insurance, plus other fees). And that’s for an asset whose maintenance costs and taxes only rise… taking more and more money out of your pocket over time.

  If you’re serious about growing wealthy, you must learn to think (and act) like the rich…

It should surprise no one what Mark’s highest-weighted asset class is. He holds 40% of his net worth in “Entrepreneurial Businesses.” Here’s what Mark wrote in the January 2016 issue of Creating Wealth:

This asset class represents the largest part of my wealth. What you might never guess is that of all the money I have invested in all my various assets, I’ve probably put the least into entrepreneurial businesses. My total investment in this class was probably less than 2% of my current net worth, but it has grown to where it is today. That’s why I’m such a fan of this category.

Bottom line: We share a lot of wealth-building secrets in these pages. But none of them will improve your financial fortunes as much as an ownership stake in a profitable business. You’ll be hard-pressed to achieve the type of financial independence Mark enjoys without it.

(Mark shares his full personal asset allocation with all paid subscribers right here.)