The world's rich lose $1.4 trillion
Elon Musk, world's richest person.
These gains are fading away after massive gains during the Corona epidemic.
According to the Bloomberg Billionaires Index, the world's 500 wealthiest people have lost a total of $1.4 trillion this year, including $206 billion in losses on Monday alone, according to the Bloomberg Billionaires Index, as global financial markets collapse under the weight of rising interest rates and exacerbating inflation fears.
These losses are in stark contrast to performance over the past year, when rising markets increased the global population of high net worth individuals by about 8%, including 13% in America, according to a Capgemini World Wealth report released Tuesday.
The data shows the ranks of the wealthy in Asia and the Pacific increased by only 4.2%, lagging behind Europe and falling further than America after it dominated the growth of the number of HNWIs over the past decade.
The Chinese crackdown on tech companies and the mediocre real estate market performance were partly to blame. Still, it also reflected substantial gains in US stock markets, helping to amplify everything from cryptocurrencies to real estate value. This is quickly reversing with inflation surging, raising concerns about how aggressively the Fed will raise interest rates.
However, the Capgemini report revealed how beneficial the Corona pandemic is, how the economic elite benefits from government facilities, and where they primarily reside.
The United States, Japan, China, and Germany are still among the countries where the world's wealthiest people live, as the report showed that these countries are home to about 64% of the world's wealth.
What's more, even among the world's highest net worth individuals, the very wealthy have achieved the most benefits. People with investable assets of $30 million or more saw their wealth expand by 9.6%. Compared to 2020, the fastest pace among the groups studied in the report, those with $1 million to $5 million - defined as "millionaires next door." They achieved a slower wealth growth of 7.8%.
Of course, this rapid rise is now under control as Bitcoin, Ether, and the rest of the cryptocurrency collapse. Tech startups find the new cost of funding rising amid central banks' drive to raise interest rates is about to become even more expensive.