World’s Billionaires See $1.4 Trillion In Wealth Evaporate Amid Market Turmoil 

A daily ranking of the world’s richest individuals shows a vast amount of wealth evaporated this year as the Federal Reserve’s missteps in curbing inflation triggered cross-asset implosions. 

The Bloomberg Billionaires Index of the 500 wealthiest people lost a shocking $1.4 trillion this year alone. On Monday’s stock market rout, billionaires lost $206 billion. 

Binance CEO Changpeng Zhao experienced the steepest losses amid the crypto meltdown. Bloomberg’s data shows he lost a whopping $85.6 billion as of Tuesday. His total net worth is now only $10.2 billion. 

Jeff Bezos is next on the list, losing $66.8 billion this year, with a total net worth of $125.5 billion. Mark Zuckerberg lost $64.4 billion, now only worth $60.9 billion. Elon Musk lost $61.6 billion but still secured a solid $208.7 billion stockpile of wealth as the world’s richest person. 

Musk, Bezos, Bernard Arnault (top luxury designer and CEO of luxury goods company LVMH), Bill Gates, and Warren Buffet round out the top five spots for the world’s wealthiest people (all of which happen to be white males). 

The largest gainers of net wealth this year include Indian billionaire Gautam Adani and Dubai-based Swiss billionaire entrepreneur Guillaume Pousaz. 

A separate report via Capgemini World Wealth shows the monetary response by global central banks increased the world’s population of high-net-worth individuals jumped 8% in 2021. It showed that the US, Japan, China, and Germany are home to 64% of the world’s billionaires. 

Gains in net worth began to reverse in late 2021 when the Federal Reserve and other central banks started to communicate to markets about how an inflation problem (now stagflation storm) would be met with hawkishness (or rate hikes). Global stocks reversed in late December and have been spiraling lower ever since.

It will only take a few oversized rate hikes by the Fed this summer to get recession fears to flourish and market participants to start pricing in the next round of easing — that will be the moment when billionaires get richer. 

Read further at ZeroHedge

Leave a Reply

Your email address will not be published. Required fields are marked *