Cautious German Savers Brave the Stock Market

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U.S. stocks such as Tesla, Apple and GameStop are attracting German investors, as negative bank rates prompt risk-averse savers to shift their money

Michael Schacht, 70 years old, is a typical German saver. Risk-averse, the clothing-shop owner kept the equivalent of $300,000 in a local bank in a small town near Hamburg.a negative 0.5% interest rate to hold his money.

Furious, Mr. Schacht did something he never considered: He put it all in the market. His portfolio includes investments in stocks and corporate bonds from Europe and elsewhere through funds, plus gold and silver. “I don’t want to make lots of money, I just want a low-risk investment that provides a reasonable return on capital, like 2%, 4%,” Mr. Schacht said. “That has always been realistic in the past.”

More Germans entered the stock market for the first time during the pandemic than in any stretch since the dot-com boom. Deutsches Aktieninstitut, a finance-industry association, estimates that 2.7 million people in Germany started owning shares directly or through funds last year, boosting the investor total to 12.4 million, up 28% from 2019.

 

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