In the period from July to August 2016, 1,056 Germans and 1,007 Americans were asked about their attitudes and behavior in investing. As far as the results of the survey are concerned, it shows that German and American investors agree in many, but not all, points:
Representative study on investment in Germany and the US – The results in the overview
Interest in the topic of investment
- Germans and Americans are almost equally interested in investing: in each case, almost half of the population aged 18 and over is either very or rather interested (43 percent in Germany and 46 percent in the USA).
- The investment study also showed that interest in investment themes in both countries is growing on income.
- Germans are more willing to invest money outside their own country with a provider (23 percent, compared to only 14 percent of Americans willing to).
- 15 percent of Germans have already done so. In the US it is only 6 percent.
Trust in computer at the investment
- Almost twice as many Germans (51 percent) as Americans (26 percent) believe that the selection of a good investment without computer support is no longer possible.
- The investment study also found that nearly one in four investors has already made at least one investment via the internet. The result is the same for both countries.
Trust in consultants
- 57 percent of Germans state a fundamental mistrust of investment advisors and asset managers. This looks very different in the US: Here, only 23 percent of respondents distrust advisers who recommend investments.
- This big difference is evident in all age groups as well as among men and women alike.
Critical attitude towards experts
- Fifty percent of respondents in Germany believe that no investment advisor can be smarter and perform better than the market. This view represents only 33 percent of Americans.
- The statement “Because the financial markets are getting more and more complicated, even experts are less and less aware of the connections.” 58 percent of German citizens agree, but only 41 percent of Americans agree.
- Twice as many Germans (42 percent) believe that “good investments can only be made if you manage a large fortune”. In her opinion, this would not be possible with small sums. Only 21 percent of Americans agree.
- According to the investment study, 27 percent of German investors are convinced that good results can only be achieved by large managers. That would be the case if, for example, they had a large staff of people behind them. Only 15 percent of American respondents believe that.
- Twice as many Germans as Americans think that only with high sums of money and expensive asset managers their investment can be regularly checked for individual investment goals.
- 58 percent of Germans have major concerns about investment advice: they say that investments are only recommended for commission interest. 46 percent are also worried about paying too much for investment advice.
- These concerns are only about a third of respondents in the US.
German relaxed at the investment
- According to the investment study, it is about equally important for both countries to be able to make financial investments from anywhere, for instance via the Internet “(56% D, 55% USA).
- In international investments, 43 percent of Germans and 42 percent of Americans consider the Internet a good help.
- However, German investors feel less stressed when they independently invest their money. However, they also take lower risks: 36 percent of Germans generally do not buy listed securities. In the US, only 27 percent do not.
Tips on investing in the capital market 2017
Due to the current zero-interest environment, secure investments hardly pay more interest. By contrast, share prices have developed partly positively. Stocks represent an option to invest money in the long term. However, trading stocks can always bring losses. Therefore, it depends on which stock is set at which time. Investing in securities has both advantages and risks:
- The purchase of shares brings different chances of winning. You may be eligible for permanent profits.
- The development of the Dax shows that stocks can be more profitable in the long run than, for example, buying a property or investing in a savings account.
- Some public companies pay an annual dividend yield. Thus, shareholders have an additional income (to the possibly rising price performance).
- During trading hours, you can buy and sell securities on the stock exchange at any time. You can invest long term or short term. Trading in shares thus offers great flexibility.
- The stock market offers investors a wide choice: there are thousands of stocks worldwide that can be traded in a variety of industries.
- You have no influence on the development on the stock market. Securities prices are subject to price fluctuations, which can also lead to losses or even insolvency. The reasons for this are very diverse, therefore, for example, psychological reasons can have profound influence.
- If the price changes suddenly take a turn, therefore, the system should never be abruptly canceled. Nevertheless, stock losses can be large. Never invest money in securities that you absolutely depend on. Experts also advise never to bet on just one share.
- In addition, issuer risk exists: the risk of total loss of invested capital if the issuer can no longer meet its payment obligations.
- You will not receive the guarantee of a dividend. As an investor, you only have the option to hope for good price developments.
- Due to the 2009 withholding tax, every taxpayer has to pay around 25 percent of profits.