Risks and Opportunities in a New Era for Stock Markets
Private investment in shares is currently booming worldwide, with hundreds of millions of new investors preferring to use convenient mobile apps to trade themselves, rather than entrust their savings to professional managers. With low interest rates and an influx of helicopter money, stock market indexes are setting new records. Today, a company’s capitalization seems to be determined as much by social media and forum posts as it is by fundamental analyses. Twelve million people in Russia have brokerage accounts, and the private investor has become a new force on the Russian capital market. Major issuers now have the responsibility of dealing with hundreds of thousands of minority shareholders, and there is a growing need to build and expand communication channels. Why are people turning to the stock market, and which issuing companies are the greatest beneficiaries as a result? What could the government do to encourage Russian companies to float on the Russian stock market? Should the growing numbers of Russian individuals investing in foreign companies be viewed as capital flight, or a prudent diversification strategy? What needs to be done to create a stable class of private investors and a well-developed domestic capital market?
