German Stock Ownership Highest Since 2007 as Yields Fall – Bloomberg 09-07-12

Salient to Investors:

More Germans have bought equities the most in five years due to inflation rising and less security and stability in bonds because of concerns surrounding Portugal, Italy, Greece and Spain – Germans traditionally loved government bonds. Share ownership declined almost every year in the decade through 2011.

Economist forecasts compiled by Bloomberg predict Germany will avoid the euro-area recession.

DAI Director Franz-Josef Leven said more and more people see they have to invest part of their income to have additional income when they are old

Germany discourages investing in real estate – buy-to-let investors who sell a property within 10 years of the purchase date facing punitive taxes.

German investors trade on social network websites, copying investment decisions made by the best-performing users.

Daniel Weston at Schroeder Equities said continuing affluence and relatively low unemployment mean Germans will keep taking more risks with their investments.

The median of 17 economists forecast Germany will grow 0.5 percent this quarter and 0.9 percent in Q4 2012.

Read the full article at http://www.bloomberg.com/news/2012-09-06/german-stock-ownership-highest-since-2007-as-bond-yields-tumble.html