In a recent economic shift not seen since 2008, global wealth witnessed a 2.4% decrease, reducing the number of millionaires in the United States by over 1.6 million.
Reports from UBS and Credit Suisse highlighted that depreciating major global currencies played a key role in this wealth decline.
Their global wealth study identified the U.S. as one of the most impacted nations, with a decline in the value of its stocks and bonds in 2022.
However, this was partly offset by the appreciation in housing prices and a few other assets.
Consequently, approximately 1.7 million individuals in the U.S. no longer hold millionaire status.
Furthermore, an additional 17,260 individuals fell from the ultra-high-net-worth bracket, meaning their total accumulated wealth is now below the $100 million mark.
Stronger U.S. dollar values and declining European markets influenced Europe’s wealth scenario last year.
In contrast, Latin America and Russia benefited from strengthening local currencies.
Interestingly, despite geopolitical tensions like the Ukraine invasion, Western sanctions, and a weakening local market, Russia reportedly saw an increase of 56,000 millionaires.
The decline in wealth can be attributed to the past year’s unfavorable performances of stocks and bonds.
However, currency fluctuations were more dominant, causing a 5.8% drop in global assets primarily denominated in dollars.