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Share ownership plunges despite recovery

The Local · 25 Jan 2011, 14:07

Published: 25 Jan 2011 14:07 GMT+01:00

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Despite the steady economic recovery and the strengthening DAX stock index, 476,000 people ditched shares or bailed out of share-based investment funds, the German Share Institute, which represents German stock-listed companies, reported.

During the last six months of 2010, the number of investors who directly or indirectly invested in shares fell to about 8.2 million – the lowest figure for more than 10 years. The number of share owners or indirect share investors stood at more than 8.6 million in the first half of last year.

Institute head Rüdiger von Rosen branded the drop a “major setback for the acceptance of shares.”

About 3.42 million investors, or 5.3 percent of the population, owned shares directly in the second half of 2010. The institute said this was back almost to the low-point of 3.39 million when Germany was in the depths of the financial crisis.

During the stock market boom of 2001, the number of share owners and fund members was nearly 13 million. Recent polls had fuelled hopes that share ownership would grow as the financial climate improved.

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With 12.6 percent of the population owning shares either directly or through investment funds, Germany is low on the international ladder. Some 30 percent of Dutch people own shares, as 27.7 percent of the Japanese, 25.4 percent of Americans and 23 percent of Britons.

DPA/The Local/djw

The Local (news@thelocal.de)

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Your comments about this article

20:42 January 25, 2011 by iseedaftpeople
I would bet it's mostly small private or "retail" investors who have backed out of the markets. I just read recently that stock ownership is at a high among top-level business executives and institutional shareholders. Those are the ones to watch, it is mainly their reactions that allow conclusions as to the overall health of stock markets. And they also control most of the invested capital. If and when they pull out and disinvest in larger numbers, it is time to get out yourself and shelter your money from an impending crash. Not when a couple hundred thousand small-time retail investors think it's getting too hot for them.

I'm staying in, I am confident that we are still about a year (if not longer) away from the next crash. I will probably sell all my stocks at the end of this year and then take a break until the markets have disintegrated again and are once more starting to pick up.
18:48 January 28, 2011 by Englishted
"declining faith in the stock market."

Ha,Ha Ha, you don't say ,I can't think why.
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