The global wealth market will decline by 7 per cent in 2020 due to the coronavirus, but will increase by USD7 trillion during the following year, according to a new report from ResearchAndMarkets.com.The report says that 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 per cent, 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 per cent.
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 the publisher’s proprietary datasets, analyses which asset classes are favoured by global investors, and examines how their preferences will impact the growth of the total savings and investments market.