The Capgemini Wealth report for 2022 got published these days. It’s a report done every year and looking at the development of the richest people in the world. They are interviewing about 3.700 „high-net-worth individuals“ (HNWI). Basically millionaires and billionaires.
First things first: the number of millionaires shrank by 3.3% to 21.7 million worldwide. And the wealth of these people shrank by 3.6%. They are holding a wealth of 83 billion$. For reference: the GDP worldwide is about 100 Billion$ per year. Which means about 0.3% of the people in the world hold the wealth of the worlds yearly GDP.
The main headline of the report is stating, that this decline of 3.6% in wealth is the steepest decline in the last 10 years. I have a different headline on this report.
In 2022 the stock markets declined with negative record values:
NASDAQ -33%
S&P500 -20%
MSCI All-country -20%
In 2022 there was no interest rate for you from a bank, if you take your savings to them.
The real estate market is predicted to contract significantly.
Now taking all this into account, I think a 3.6% decline for this community is actually great. Market conditions had been far worth and the decline should have been normally much higher. The trick for these „HNWI“ is, that they have fundamentally more ability to diversify their assets. Just an example – they increased their cash assets by 10% from 2021 to 2022 (from 24% to 34%). Means they just holding more cash. You can do that, if you are not dependent on the income generated by this money.
My reading is simple: Yes, the super-rich feel the bad market conditions as well – but far softer than the rest of the society. They have much more options to handle these harder market conditions. And they have – for sure – a lot of attention. Capgemini is doing this report to help these people to become richer and secure their wealth – you call this „wealth management“…companies concentrated on wealthy people.
There is no „poor management“ company in the world…companies concentrating on poor people. In our society you call this NGO. And we are looking for the society to donate for these people. But we never think about „managing“ for them, so they can potentially get out of poverty.
