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Crashing markets thinned the ranks of America’s millionaires last year as global wealth shrank for the first time since 2008
By Jerry
- Global wealth declined in 2022 for the first time since 2008, UBS and Credit Suisse economists said Tuesday.
- Americans were hit hardest as stocks and bonds tumbled throughout the year, the banks said.
- Roughly 1.7 million US adults lost their status as millionaires.
Notably, about 1.7 million US adults lost their status as millionaires in 2022. Plus, 17,260 fell out of the ultra-high net worth bracket of those worth $100 million or more.
The S&P 500 crashed by 19% in 2022, and it was one of the 10 worst years for the stock market in nine decades. The losses erased most of the meteoric gains seen in 2021, when the market grew by more than 26% and wealth surged.
“[F]inancial assets contributed most to wealth declines in 2022 while non-financial assets (mostly real estate) stayed resilient, despite rapidly rising interest rates,” the economists wrote. “But the relative contributions of financial and non-financial assets may reverse in 2023 if house prices decline in response to higher interest rates.”
