The global wealth market will decline by 7 percent in 2020 due to the coronavirus, but will increase by $7 trillion in 2021, according to a new report from ResearchAndMarkets.com. U.S. investors will suffer the most in 2020 because of their preference for risky asset classes that have been severely damaged, which have experienced declines mirroring the 2007–2009 recession.
High-net-worth individuals will see their liquid wealth reduce by 11 percent in 2020, an approximate loss of $5.2 trillion.
Returns from all asset classes will be low as stock markets have crashed, interest rates are nearing zero percent, 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, ResearchAndMarkets.com predicts 2021 will be the bounce-back year, with the global retail savings and investments market set to increase by 10 percent.