The Stock Market and cryptocurrency trading gains created more than a million new millionaires in the US last year, according to a new report.
The number of people in the country who have $1 million dollars or more in investable assets increased to a record of 14.6 million in 2021, when in 2020 there was only 13.3 million, according to a report by the wealth research firm Spectrem Group.
The growth rate of over 10% is the strongest seen in years, and the vast majority of the money was obtained thanks to the stock market, cryptocurrencies and other assets.
“It was the strongest year for millionaire creation across all segments,” said George Walper, president of Spectrem Group.
It is worth mentioning that the increase in wealth s It was stronger in people who already had a large net worth. And it is that the number of people in the United States with a fortune of $25 million dollars or more increased by 18%.
There is now a record of 252,000 people with a wealth of $25 millions or more, when in 2020 there were only 214,000. On the contrary, the amount of the rich who have between $51,10 and $1 million dollars, grew approximately 2%.
The Stock Market was by far the largest source of wealth for millionaires and the wealthy in 2021. The S&P 500 gained 32% last year, while the Nasdaq rose by 21%. The richest 1% of people in the United States earned more than $3, million dollars in stock market wealth at 2021, according to data from the Federal Reserve.
Cryptocurrencies and other assets, such as NFTs, collectibles and goods roots, also gained value, which added to the wealth of the rich. The total market capitalization of cryptocurrencies, despite wild swings in prices, gained $1,500 million last year to more than $2,300 million.
Private and venture capital investment values also increased. Since the wealthy can put more of their money into investments, especially those with the highest risks and rewards, ultra-rich people benefited more than wealthy people with between $100,000 and $1 million dollars in 2021.
“The rich have the greatest exposure to the largest investments. It wasn’t just traditional liquid markets that performed well last year. It was also alternative investments, real estate investments and cryptocurrencies,” Walper said.
Gains among the wealthiest also widened the wealth gap in the US. The share of wealth held by the 1 % of the richest grew to a record 32% last year, according to the Federal Reserve.
Wealth experts say last year’s gains are unlikely to hold at 2022, given rising inflation, rising interest rates and a possible economic slowdown. Stock market crashes have already begun to cut into investors’ paper fortunes. The Nasdaq is down 14.5% for the year, while the S&P is down 8.4%.
You may also like:
– Elon Musk is too thrifty, his partner says he doesn’t buy a new mattress, even if the one he uses is broken2022– Elon Musk, the richest man in the world, secretly had a son in December
– Billionaire from 51 years will marry a girl of 21; he used to say that love was “a thing for the poor”