Yes, is the answer of the economists working at McKinsey Global Institute. The consulting firm's think-tank thinks several forces are converging to that will reshape global capital markets in the coming decade. As they develop, there could be a trend away from equity investment that will change how businesses finance themselves and view their governance. "The most important of these is the rapid shift of wealth to emerging markets where private investors typically put less than 15 percent of their money into equities," MGI says. In more developed markets, investors put 30 to 40 per cent into equity instruments. Moreover, structural changes in the developed world are conspiring to reduce demand for equity. MGI thinks the ageing population as well as shifts in pension regimes will push the demand side towards income-generating investments. Moreover, the growth of alternative investments is a sign that investors seeking high returns will look further afield than equities to boost risk and reward. Yes, and new financial regulations will probably hurt demand for shares.
All in all MGI see a potential $12 trillion “equity gap” emerging over the next decade. It projects that the share of global financial assets held in listed equities could fall from 28 per cent to 22 per cent by 2020 if these trends continue.
Source document: The MGI summary has links to an executive summary and the full report.
No comments:
Post a Comment