The global wealth market will decline by 7% in 2020 due to the coronavirus. The pandemic has forced worldwide markets into lockdown, which will result in severe economic downturn. HNW individuals will be hurt the most due to their appetite for riskier asset classes, which have experienced declines mirroring the 2007-09 recession.
Returns from all asset classes will be low as stock markets have crashed, interest rates are nearing 0%, and emergency government support is reducing yields from other fixed-income products. Recovery is expected to be slow, and will differ from country to country. However, we do predict that 2021 will be the bounce back year, with the global retail savings and investments market set to increase by 10%.
This report explores the impact of COVID-19 on the wealth market from 2020 onwards. It sizes the wealth market both by number of individuals and the value of their liquid assets using GlobalData’s proprietary datasets, analyzes which asset classes are favored by global investors, and examines how their preferences will impact the growth of the total savings and investments market.
- HNW individuals will see their liquid wealth reduce by 11% in 2020 - an approximate loss of $5.2tn.
- Global equity balances will see the largest fall with a 26% decline in 2020 as global stock markets crashed in mid-March, mirroring positions seen during the last global recession.
- US investors will suffer the most in 2020 due to their preference for risky asset classes that have been severely damaged.
Reasons To Buy
- Benchmark your share of the global wealth market against the current market size.
- Forecast your future growth prospects using our revised projections for the market to 2021.
- Identify your most promising client segment by analyzing the penetration of affluent individuals globally.