Finance Monthly. Bank i ng & F i nanc i a l Se r v i ce s 41 (Source: Google Finance) How has the wealth management world developed recently and what has influenced this? The epidemic and the escalation of the Russian-Ukrainian war were the key variables impacting the wealth management business in the last 2 years. However, these events have mainly influenced the assets themselves rather than how money and other assets are managed. The movement of the Standard and Poors 500 clearly illustrates these tendencies. This index monitors the weighted average of the share prices of 500 big businesses listed on US stock exchanges. How has the pandemic affected the wealth management landscape? During the pandemic Financial market developments in the first half of the reporting period were heavily biased toward equity markets and, in particular, riskier assets. Overall, this had a twofold effect: on the one hand, wealth management firms and their customers who switched in good times were able to expect up to triple-digit returns; on the other hand, the resulting flood of money led to a significant increase in the real estate sector and other markets. In this situation, not only were those with substantial savings able to increase their wealth, but also many new people joined the club. They typically came from the following industries: • Disruptive start-ups, including video chat apps or work from home, and blockchain solution developers • Cryptocurrency and NFT traders • Executives from home delivery companies • Executives from transportation and logistics companies • Companies dealing in biotech and healthcare, especially solutions against COVID-19 Of course, there were some shortterm losers in this situation, including real estate developers, restaurant operators, and some players in the construction industry. After a pandemic, in a war The weakening of the virus and the gradual increase in general immunity made it seem for a short time that economic life would remain stagnant at this high level for some time. But experts had already sounded the alarm: we are facing a global crisis and associated inflation due to the labour shortages caused by the pandemic and the massive problems in the supply chain. Moreover, inflation has been further exacerbated by the escalation of the conflict between Russia and Ukraine in February 2022, skyrocketing oil and energy prices worldwide. And a major attack on the crypto market has also had a serious negative impact on financial markets already in a downtrend (especially the riskiest cryptocurrencies). Those who did not act in time were either stuck in their positions on the stock market and the crypto market for an unpredictable period or suffered significant losses.
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