McKinsey forecasts a £12 trillion equity gap over the next decade
1 January 2012
According to McKinsey & Company, several forces are converging to reshape global capital markets in the coming decade and reduce the role of listed equities. 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 (compared to 30–40 percent in many mature economies). At the same time, demand for listed equities in developed economies is likely to fall due to aging, shifting pension regimes, growth of alternative investments, and new financial regulations.
The result will be a potential $12 trillion “equity gap” over the next decade between the amount of money that investors will wish to hold in equities and the amount that companies will need to fund growth. McKinsey Global Institute 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.
>
>
>
>
>
Subscribe to our financial news as an RSS feed.