Money: stock market slides in 2022: fewer rich, fewer assets

Money: stock market slides in 2022: fewer rich, fewer assets

Turbulence in the stock markets has made many rich around the world a little poorer in 2022. Some are no longer part of the dollar millionaires’ club. Germany still holds third place.

Many rich people around the world have felt the slump in stock markets over the past year. According to data from the consulting firm Capgemini, the number of people worldwide with investable assets of at least one million US dollars fell by 3.3 percent to 21.7 million within a year.

The combined value of these people’s wealth shrank 3.6 percent year-on-year to $83 trillion. According to Capgemini, this is the sharpest decline in both categories in more than ten years: “The reason was the geopolitical and macroeconomic uncertainties.”

Almost 21,000 fewer millionaires in Germany

In Germany, according to the information, the club of dollar millionaires decreased by 20,900 people from 2021 to 2022 to a good 1.61 million members. Their total assets fell by 2.2 percent to just over $ 6.1 trillion. A year earlier it had risen by 7.4 percent to around 6.3 trillion dollars.

In Europe as a whole, the assets of dollar millionaires shrank by 3.2 percent year-on-year to $18.2 trillion, according to the calculations. The North America region recorded the strongest decline in assets, down 7.4 percent to $25.6 trillion.

According to the evaluation, Germany claims third place in the ranking of countries with the most dollar millionaires despite falling numbers: The USA is still at the top with a good 6.9 million people in this category (2021: 7.46 million) ahead of Japan with 3.55 (3.65) million. China comes fourth with almost 1.5 (around 1.54) million high net worth individuals (HNWI).

The World Wealth Report

Capgemini’s World Wealth Report, which has been produced annually since 1997, includes equities, fixed income, alternative investments such as private equity, cash and real estate, provided they are not used by the company. Collections or consumer goods are not included.

Other analyzes confirm the trend pointed out by Capgemini: The insurer Allianz, which presents an annual study on the development of global financial assets, predicted the trend reversal for 2022 as early as October: After significant growth of more than ten percent in the three previous years, it is for 2022 Due to the consequences of the Ukraine war, including high inflation and tightening of monetary policy, a decline in global financial assets of more than two percent is to be expected – the first significant loss of assets since the financial crisis of 2008.

Wealth of private households in Germany

With regard to Germany, the Bundesbank came to the conclusion for 2022 that people in this country lost billions in total as a result of price falls on the stock exchanges last year. According to calculations by the Bundesbank, the assets of private households in the form of cash, securities, bank deposits and claims against insurance companies at the end of the year were around 7254 billion euros, well below the record value of 7624 billion euros at the end of 2021. The leading German index Dax lost 12 last year .3 percent in value. The index for medium-sized stocks MDax even recorded a minus of 28.5 percent.

Source: Stern

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