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Swiss Equity Investors Scared By Bear Market

by Philip Morton, Investors Offshore.com

14 November 2002

A study recently conducted by the Swiss Banking Institute has revealed that Swiss investors have been fairly comprehensively scared away from the equity markets by two bearish years, with the number of shareholders in Switzerland falling by around 25% over that period.

However, speaking to the Swissinfo news service, Institute director, Professor Rudolf Volkart explained that it would be wrong to interpret these figures as representing a 'mass exodus'.

'We think that the decrease in equity holding or share ownership is not as dramatic as it could be,' he explained, adding that: 'We show in our study that the decrease is induced primarily by relatively small shareholders.'

The previous survey was conducted in 2000, and coincided with the rise of the technology bubble, and the record share prices which ensued from it, a factor which could go a long way towards explaining why this year's results appear disappointing by comparison.

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