Last year, a million new millionaires were born in the United States, and the wealthiest people became even wealthier

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According to a survey by wealth research firm the Spectrem Group, the number of Americans with $1 million or more in investible assets increased to a record 14.6 million in 2021, up from 13.3 million in 2020.

The economy grew at its fastest rate in years, thanks to trillions of dollars in wealth created by the stock market, cryptocurrency, and other assets.

According to George Walper, president of Spectrem Group, "it was the strongest year ever for millionaire generation in all segments."

The increase in wealth was greatest at the top. The number of Americans with a net worth of $25 million or more increased by 18%. From 214,000 in 2020, there are currently a record 252,000 Americans with $25 million or more. By comparison, the number of "mass affluent" investors — those with $100,000 to $1 million in assets — increased by around 2%.

In 2021, the stock market was by far the most important source of wealth for millionaires and the rich. Last year, the S&P 500 gained 27%, while the Nasdaq gained 21%. According to Federal Reserve figures, the wealthiest 1% of Americans gained almost $3 trillion in stock market wealth in 2021.

Cryptocurrencies and other assets, like as non-fungible tokens, collectibles, and real estate, have also increased in value, increasing the wealth of the wealthy. Despite huge price swings, the entire market valuation of crypto assets increased by $1.5 trillion to over $2.3 trillion last year, according to CoinGecko.

Investments in private equity and venture capital also increased in value. Ultra-millionaires benefited more than the mass affluent in 2021, since the wealthy can afford to put more of their money into investments, especially those with the biggest risks and rewards.

"The wealthiest people have the most exposure to the widest range of investments," Walper added. "Last year, it wasn't only typical liquid markets that performed well. Alternative investments, real estate investments, and cryptocurrency were all on the list."

The wealth disparity in the United States has also increased as a result of the gains at the top. According to the Federal Reserve, the top 1%'s share of wealth increased to a record 32 percent last year.

Given increasing inflation, rising interest rates, and the possibility of an economic recession, wealth experts believe that last year's gains will not be repeated in 2022. Investors' paper fortunes have already begun to be trimmed as a result of stock market falls. The Nasdaq has dropped 14.5 percent this year, while the S&P 500 has down 8.4 percent.

"Every day is different," Walper added, "so it's difficult to forecast where the year will end up." "However, the first few months of 2022 have already drawn a picture that is very different from that of 2021."

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