Shunning Stocks and Hoarding Cash Is Harming European Wealth
Failing to invest makes Europeans poorer and starves domestic companies of equity capital.
Break open the piggy bank to increase your wealth.
Photographer: Mark Renders/Getty Images EuropeDrinks without ice, the best way to make tea and the appropriate amount of vacation are subjects Europeans and Americans can debate. But when it comes to keeping cash in the bank versus investing it in the stock market, there’s no doubt who’s in the wrong: The savings habits of Europeans increase inequality, keep them poorer than they otherwise would be and starve domestic companies of equity capital.
No wonder more companies are angling to list in the US in the hope of a better valuation: over there, the Magnificent Seven and the S&P 500’s record high are acceptable topics of polite conversation, whereas many Europeans equate investing with gambling.