Is equity culture in Germany in terminal decline? Is it in hibernation? Or is there even light at the end of the tunnel? The answer to the last question is yes, but there could be more.
Surprisingly for those who have confidently predicted the equity culture’s imminent demise, the facts do not look too bad. Even after almost four years of market downturn, 17.9% of the German population over the age of 14 still own shares or equity-related fund units, a rise of 0.2 % on 2000. Those investors who have decided to take a long-term view are still likely to achieve higher rates of return than investors in debt securities.
