US household wealth has fallen between $5 trillion and $8 trillion so far this year as a result of the market selloff.
Heavy losses in the stock market resulted in the wealth wipeout. The S&P 500 is down about 20% so far this year, while the Nasdaq 100 is down about 30%. The index of Cryptocurrencies is down 50% so far this year.
The collective wealth of US billionaires has fallen by almost $800 billion since their peak in November.
The wealth shock that is set to drag on growth in the coming year is caused by losses in household net worth. Consumer spending typically falls by two cents a year with every dollar decline in financial wealth, according to JP Morgan.
Household wealth could fall further through the second half of the century to $9 trillion in total losses, according to a note seen by Insider.
The biggest loser among American billionaires so far is Musk, who has lost 40% of his wealth since his net worth briefly topped $340 billion. Most of Musk's wealth is held in the shares of the company. He is currently worth about $201 billion.
Since his peak last year, Jeff Bezos has lost 40% of his net worth. Bezos is now worth more than $131 billion. Amazon shares are down a lot.
According to the Federal Reserve, American households and nonprofits held $170 trillion at the end of the year. The majority of the money is held in real estate.
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