Market Volatility Led to Declines in the Ranks of the Ultra Wealthy Last Year

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Virtually all of the world’s major markets saw dips in their populations of super rich, with the biggest decline in Asia, according to Altrata’s World Ultra...

The global population of the ultra-wealthy fell by 5.4% in 2022, as investment portfolios were affected by shockwaves across the global economy, according to a report Wednesday by the London-based Altrata Group.

“2022 was a challenging year for the ultra-wealthy for several reasons, including skyrocketing inflation rates, geopolitical instabilities, and volatile equity markets,” says Maeen Shaban, Altrat’s director of research and data analytics. “In addition to the Ukrainian war, a high dependence on the financial services sector in some European markets contributed to double-digit inflation rates. This, in turn, had a strong impact on demand, which affected international markets in Asia, particularly.

Further complicating matters was a generational surge in inflation, which triggered aggressive monetary policy tightening for the first time in more than a decade, and prompted a major reassessment of capital market risk and returns. Bond markets slumped, and most leading stock market indices posted double-digit falls.

Despite recording a decline of 4% in 2022 to 142,990 individuals, North America—the leading ultra-wealthy region—saw its share of global ultra-wealthy rise slightly, to 36%, as both Asia and Europe saw their slices of the population shrink.The U.S.—by far the world’s largest wealth market—experienced a 4% decrease in ultra-wealthy individuals, slightly less than the global average and a “better” performance than the next four top-ranked countries .

– With an increase of 3%, India was the only one of the world’s top 10 ultra-wealthy countries not to record a decline in members.

 

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