Cautious German Savers Brave the Stock Market

  • 📰 WSJ
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 63%

United States News News

United States United States Latest News,United States United States Headlines

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.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 98. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

please retweet. Mauritania is facing acute humanitarian needs, including high levels of food insecurity (over 25 per cent of the population in severe food insecurity in most of the provinces) and very high rates of acute malnutrition. UN

United States United States Latest News, United States United States Headlines