Equities Waning Long Term?


November 16, 2011

The Mckinsey Global Institute (MGI) sees a huge gap between where investors are putting their money and the amount companies will need to finance growth over the next decade.


The consulting company analyzed data and trends around the world to discover that there is a potential USD12 trillion “equity gap” emerging. The report discusses in detail how individuals invest their money in developed and emerging markets, their taste for equities and the proportion of holdings in equity stocks over time.


MGI projects that the share of global financial assets held in listed equities could fall from 28 percent to 22 percent by 2020 if these trends continue, which is significantly less than what companies will need to finance growth.

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