German private households own gross financial assets of almost five trillion EUR. We take a look at how these assets are allocated. In general, German savers put more trust in banks and insurance companies than in financial markets:
• Germans are cautious (not only) when it comes to allocating their savings: 41% of financial wealth is held in usually low yielding bank accounts and in cash. Another 30% are claims on insurance companies. These numbers have been quite stable over time.
• Less than 20% of the wealth is directly invested into securities; and if so, many savers prefer mutual fund shares over single stocks or bonds.
• As only 11% of households own equities, they don’t feel much “wealth effects” when equity markets move strongly. That helps to explain why private consumption is quite stable both in good times and bad.
Click here to read the full report: Economic Research
Nordea