Nineteen individuals lost more than a billion each in the global stock market crash on Monday
The global stock markets are on a roller-coaster ride that began earlier this week. On Monday, the Dow Jones Industrial Average saw its biggest-ever single day point drop in history when it plummeted by 1,175 points. It’s second biggest drop was on September 29, 2008, two weeks after Lehman Brothers collapsed, and even then it lost only 777 points. The S&P 500 declined 4.1 per cent on Monday, and had it dropped down seven percent, there would be automatic “circuit breakers” which would pause trades to prevent the stock market from crashing.
Incredibly, investors around the world saw $4 trillion of their wealth wiped away in a matter of hours. On Monday, the world’s 500 richest people lost a combined $114 billion. Some of the biggest losers were also some of the world’s richest men. Warren Buffet, the world’s third-richest man, was the biggest loser with $5.1 billion swiped off his net worth.
Had a rough day?
Mark Zuckerberg lost $3.6 billion today.
Jeff Bezos lost $3.2 billion.
Google's founders lost $2.3 billion, each.
Bill Gates lost $2.2 billion.
— scott budman (@scottbudman) February 5, 2018
Facebook’s Mark Zuckerberg was the second biggest loser on Monday and saw his worth decline by $3.6 billion. The world’s richest man, Jeff Bezos, came in third after losing $3.3 billion. Bill Gates lost $2.2 billion while Zara’s Amancio Ortega lost $2.2 billion.
By the end of Monday, Bezos was still worth $113 billion. As of today, Buffett is worth $86 billion and Zuckerberg is at nearly $75 billion. Clearly, a billion or two – or five – lost isn’t going to keep any of them up at night. None of them are in as bad a shape as Brazil’s Eike Batista who in 2012 was the seventh richest man in the world. By 2016 though, he was reportedly $1 billion in the negative.
The reasons for the crash can be attributed to several factors including three interest rate hikes that The Fed will likely undertake this year, as well as unemployment rates in America being at its lowest since 2000 as an upward surge in average wages across the country.
Earlier this year, Oxfam reported that the world’s richest one per cent bagged 82 per cent of the wealth created in 2017, and also said that only 42 people have a combined net worth that’s equal to that of the poorest half of the world. With the volatility of the stock market, we wonder what that report would have looked like had it been tabled after the close of trading on Monday.