In 2022, the world’s richest people squandered one-tenth of their total wealth in the massive turmoil in international markets following Russia’s invasion of Ukraine. In particular, the wealth of 218,000 people with assets worth more than $30 million fell from $101.5 trillion. dollars in 2021 to 91.4 trillion. dollars in 2022, according to related analysis by Knight Frank.

With rising costs of living, successive increases in interest rates by central banks around the world, and massive liquidations in international stock markets, this is the biggest annual decline in the wealth of the wealthy since the study began in 2010.

The biggest losses, about 17%, were recorded last year by European crosses.

While four out of ten super-rich in this category increased in wealth last year, the deep hit to the rest sent the average into negative territory, with Europe posting the biggest losses. Always according to Knight Frank’s analysis, which mentions in his publication moneyreview.grEuropeans, who are among the richest people in the world, have reduced their wealth by 17% over the past year. The Old Continent is followed by the wider region of Australia and Asia with a decrease of 11%, the Americas with a decrease of 10%, then Asia and the Middle East with a decrease of 7% and finally Africa with a decrease of 7%. decrease in the wealth of the rich by 5%.

In fact, according to the Bloomberg Billionaires Index, just four billionaires — Tesla CEO Elon Musk, Amazon founder Jeff Bezos, Binacne CEO Changpeng Zhao, and Meta platform co-founder Mark Zuckerberg — have lost a total of $392 billion through 2022. The decline in wealth is not surprising given the dramatic shift in monetary policy, with the traditional diversified portfolio performing the worst since the 1930s and beyond,” he said, characteristic of Knight Frank research chief Liam Bailey. Significant erosion in the value of housing, fixed income and so-called “passionate investments” such as art, rare wines and whiskey has been recorded in 2022, according to the report. The report shows that even the ultra-rich are not immune to central bank monetary policy decisions, and it is the decisions taken by major central banks over the past year that aim to curb high and persistent inflation. And the tightening process was not interrupted in 2023.

Of course, it is worth emphasizing here that, despite great turmoil in international capital markets, the wealthy planets have continued to invest heavily in new luxury homes. Tellingly, in London and New York, a total of 43 residences changed hands for at least $25 million in 2022. This is a 26% increase in sales of very expensive homes in London, but in the case of New York, there was a corresponding decline of 35%, and another American metropolis follows in third place. There we find Los Angeles, where 39 such mansions were sold in 2022, followed by Hong Kong with 28 deals, and Miami with 23 luxury residence deals.