This year, the financial markets have experienced days of carnage, and just during these sessions, investors have lost trillions of dollars. Stock markets have experienced some of their worst days of the year due to back-to-back factors including the Omicron wave, the war in Russia and Ukraine, and the following surge in global inflation that hasn't been brought under control yet. The richest people in the world have lost millions of dollars as a result, and this has led to losses for investors. The 500 richest people in the world together suffered losses totaling $1.4 trillion this year, research claims.
The Bloomberg Billionaires Index estimates that the total losses include a loss of up to $206 billion just on Monday. The S&P 500 index fell 4% on the day to finish in the bear market territory and hit a new low for the year at 3,749.63. The pressure of increased interest rate forecasts by central banks, notably the US Federal Reserve, as well as the expectation of further inflation growth that has been a feature of the global economy since Russia began the war on Ukraine are wreaking havoc on the world financial markets.
Elon Musk, Changpeng Zhao Lose Most Money
Five of the richest people in the world collectively lost more than $345 billion in wealth this year, according to figures from the Bloomberg Billionaire's Index. Elon Musk, the CEO of Tesla, lost $73.2 billion of this, while Changpeng Zhao, the CEO of Binance, lost the most money, $85.6 billion, due to declines in the value of cryptocurrencies. Jeff Bezos, the CEO of Amazon, lost $65.3 billion, while Mark Zuckerberg and Warren Buffet each lost $64.4 billion and $56.8 billion.
Gautam Adani lost his membership in the $100 billion club despite Adani stocks generally being on the upside even during the market crisis because he lost about $8 billion since late May. According to the Bloomberg Billionaire's Index, Adani lost $1.96 billion in the most recent shift and currently has a net worth of $92.9 billion.
What’s Happening in India?
As the Sensex lost about 1,500 points at Monday's close and continued to lose ground early on Tuesday, equity markets at home were also on a losing streak. The Nifty was down 30.20 points or 0.19 percent at 15,744.20 as of 09:17 IST, while the Sensex was down 125.42 points, or 0.24 percent, at 52,721.28.
The Asia Pacific Headed for Stunted Growth
The Bloomberg Billionaire's Index data shows that the ranks of the wealthy in the Asia-Pacific area only rose by 4.2%. The region had changed from its historical character, which had seen a dominance of the expansion of the wealthy in the region, and was now falling more behind Europe and North America. According to a Bloomberg story, "part of the reason was due to China's crackdown on technological businesses and a cooling real estate market, but it also mirrored the furious advances in the US stock market, which boosted the value of everything, including cryptocurrencies and real estate. However, the report said, that this is now reversing quickly as inflation has gone through the roof as experts anticipate a sharp rate hike by the US Federal Reserve.