.jpg)
According to a broadly-based survey conducted by the market research firm Forsa on behalf of Boerse Stuttgart, over two thirds of Germans regard a knowledge of ‘investment and finance’ as very important, yet only 50 percent believe they are well informed on the subject. 84 percent of those who took part believe that everyone ought to have an understanding of investment and finance. It is striking, however, that 52 percent felt they were poorly or not at all informed. The survey also shows that a clear majority of the population would welcome the introduction in all schools of a subject that gave pupils the financial knowledge they need. 73 percent of respondents in the Forsa survey were in favour of such a move.
Education is the best protection for investors
“Many retail investors are not sure what they can put their trust in – and that’s not just since the recent stock market turmoil,” says Christoph Lammersdorf, CEO at Boerse Stuttgart Holding GmbH, who believes this low level of confidence is mainly due to a lack of information. His conclusion is backed up by the survey. 82 percent of those questioned regard the whole area of investment as too complex, while only about 18 percent felt they were well informed on investment issues. As the results demonstrate, for the vast majority of respondents the subject is so difficult that as customers they feel barely able to judge what is good and what is bad. “Education is still the best protection for investors,” adds Christoph Lammersdorf, who recommends that investors research the subject carefully and familiarise themselves with financial issues: “German retail investors have to engage more with their investments and find out what they need to know about asset building and pension provision.”
Books and financial magazines are the best source of information
Books and financial magazines top the list of source materials on the subject of investment and finance. For 65 percent of those surveyed, these are particularly good sources of information on finance and securities. Another striking result to emerge from the survey is that banks, independent financial advisors, insurers and investment companies continue to enjoy the trust of 52 percent of Germans. Those in the 18-29 age group in particular view banks and insurers as a reliable source of information, with over two thirds (72 percent) of young Germans in this category regarding these institutions as particularly suitable when it comes to providing general information about investment and finance. Furthermore, neutral trading institutions such as stock exchanges are also cited as a good source of information by one in three Germans. For Christoph Lammersdorf, the survey results confirm the value of the efforts made by Boerse Stuttgart to educate investors: “There is clearly some catching up to do among the population as a whole, which is why investor education will remain one of our key concerns as an official stock exchange.” As well as offering a wealth of information on its website, Boerse Stuttgart organises educational events and supports other organisations involved in investor education.
