Deutsches Aktieninstitut (DAI) has published new facts and figures on investing in shares and securities. Below you will find some insights into the most important economic factors influencing the stock market in 2024.
It then examines, for example, which factors were particularly important for share ownership in 2024 and how shareholder numbers have developed in the East and West.
The most important in a nutshell
- Interest rate turnaround by major central banks Fed and ECB, geopolitical conflicts and US presidential election were key influencing factors in stock market year 2024
- Share ownership strongly dependent on income - Younger investors are increasingly turning to ETFs
- Regional differences between east and west - Bavaria has the highest shareholder density
Possible factors influencing the stock markets in 2024
- Interest rate turnaround by the Fed and ECB as a potentially significant factor influencing the stock markets
The stock market year 2024 was characterized in particular by the turnaround in interest rates by the major central banks, the Federal Reserve (Fed) and the European Central Bank (ECB). While the Fed cut its key interest rate by 0.5 percentage points last September, it turned the interest rate screws by a quarter of a percentage point in both November and December. The interest rate band currently stands at 4.25 to 4.50 percent.
Surprisingly, the ECB has heralded the long-awaited turnaround in interest rates before the Fed. The European colleagues had already lowered key interest rates five times in June 2024 and thus by February 2025. According to the ECB's monetary policy decision of March 6, 2025, the deposit rate is 2.50 percent and the main refinancing rate, at which banks can obtain fresh money, is 2.65 percent.
- Geopolitical uncertainties also kept investors very busy
However, geopolitical uncertainties, such as the conflict between Ukraine and Russia and in the Middle East, also repeatedly caused unease, especially in the past stock market year 2024.
Even though the legs of geopolitical stock markets tended to be short, the uncertainty of an escalation kept hovering over investors' heads like a classic sword of Damocles.
These uncertainty factors are likely to continue to drive investors in 2025. However, since Donald Trump took office, the USA has been making greater efforts to initiate peace talks between Ukraine and Russia.
- US presidential elections in 2024 as one of the highlights of 2024
In the last quarter of the year, it was primarily the US elections that cast their shadow. Once the results were known, the main feeling was relief that there would be no political deadlock and that a new government would be formed quickly.
However, Trump has caused strong movements on the markets since entering the White House. In particular, the trade disputes between the US and major economies are likely to continue to accompany investors in the coming months. Last but not least, possible counter-reactions from the affected nations could lead to an escalation of the trade conflict.
12.1 million people had shares, equity funds or ETFs in their custody accounts in 2024
In 2024, a total of 12.1 million citizens had reported to Deutsches Aktieninstitut according to either shares, equity funds or ETFs in their portfolios. Of these, 30 percent used so-called savings plans for their investments. One in three invested in so-called ETFs (exchange-traded funds). 10.5 million investors saved with funds or ETFs and 4.2 million of the total of 12.1 million shareholders held individual shares.
Classification: According to the Federal Statistical Office (Destatis), around 83.6 million people were living in Germany at the end of 2024.
What was share ownership heavily dependent on in 2024?
The Deutsches Aktieninstitut according to only 10 percent of equity investors with a net income of less than 2,000 euros owned securities, equity funds or ETFs. With a net income of EUR 2,000 to less than EUR 3,000, the proportion was 23%, from EUR 3,000 to less than EUR 4,000 it was 34% and from EUR 4,000 and more it was 49%, meaning that a strong dependency on income can be assumed according to the DAI.
What were the shareholder figures in the East and West?
According to the DAIs in 2024, Bavaria had the most shareholders at 23.1%, followed by Baden-Württemberg (21.7%), Hesse (20%), North Rhine-Westphalia (17.2%), Lower Saxony (15.3%), Schleswig-Holstein/Hamburg (14.5%) and Rhineland-Palatinate (13.3%).
Berlin (13.7 percent), Saxony-Anhalt (11.7 percent), Thuringia (11.5 percent), Saxony (10.9 percent), Brandenburg (10.8 percent) and Mecklenburg-Western Pomerania (8.6 percent) round off the ranking.
It is also striking that the proportion of shareholders in western Germany (18.6 percent) was significantly higher than in eastern Germany (11.4 percent).
What was the age structure of younger investors when investing in shares?
45 percent of ETF investors were under 40, followed by a fifth of 40-49 year olds, 17 percent between 50-59 and 18 percent over 60.
Young investors obviously find it more difficult to invest in traditional funds. Only a quarter under the age of 40 invested in this asset class, followed by 16 percent (40-49 years), 28 percent (50-59 years) and 31 percent (60+).
Source: DAI.
ETF savings plans are the most popular form of investment, ahead of fund savings plans and share savings plans
The DAI according to the proportion of savings plans by type of investment was highest for an ETF savings plan (47 percent), followed by a fund savings plan (22 percent) and an equity savings plan (10 percent).
Summary: Income as an important influencing factor - Large regional differences in share ownership in Germany
The stock market year 2024 was characterized in particular by the turnaround in interest rates by the major central banks, the Federal Reserve (Fed) and the European Central Bank, which obviously increased the attractiveness of interest-free investments such as equities compared to fixed-interest securities. However, geopolitical uncertainties, such as in the Ukraine-Russia conflict and in the Middle East, are likely to have repeatedly curbed risk appetite in the meantime.
The US presidential election in 2024 and the relief of a swift government formation as well as a rally in the artificial intelligence (AI) sector are also likely to have contributed to the optimism.
It is interesting to note, however, that younger investors seem to have more difficulty with traditional funds and prefer to invest in classic ETFs. The regional differences between east and west should also be emphasized. At 23.1%, Bavaria had the most shareholders in 2024. Brandenburg (10.8%) and Mecklenburg-Western Pomerania (8.6%) were in last place.
Overall, the shareholder figures were DAI in 2024 will exceed the twelve million mark for the fifth time in a row, which should underline the trend towards going public independently.
Sources:
- https://de.statista.com/statistik/daten/studie/419455/umfrage/leitzins-der-zentralbank-der-usa/
- https://de.statista.com/statistik/daten/studie/201216/umfrage/ezb-zinssatz-fuer-das-hauptrefinanzierungsgeschaeft-seit-1999/
- https://www.destatis.de/DE/Presse/Pressemitteilungen/2025/01/PD25_030_124.html#:~:text=030%20vom%2023.,Januar%202025
&text;=WIESBADENAs of the end of 2024,peoplehadoverby theend of theyear2023. - https://www.rnd.de/politik/donald-trump-droht-russland-mit-zoellen-und-fordert-friedensverhandlungen-3GCQA376WFOZNAHVSH6IG3NHDA.html
- https://www.dai.de/zahlen-und-fakten
- https://www.dai.de/fileadmin/user_upload/DAI_24037_Aktionaerszahlen_2024_Website_8.jpg
- https://www.dai.de/fileadmin/user_upload/DAI_24037_Aktionaerszahlen_2024_Website_9_neu.jpg
- https://www.dai.de/fileadmin/user_upload/DAI_24037_Aktionaerszahlen_2024_Website_4.jpg
- https://www.dai.de/fileadmin/user_upload/DAI_24037_Aktionaerszahlen_2024_Website_5.jpg
- https://www.dai.de/fileadmin/user_upload/DAI_24037_Aktionaerszahlen_2024_Website_1.jpg
- https://www.dai.de/fileadmin/user_upload/DAI_24037_Aktionaerszahlen_2024_Website_2.jpg
- https://www.tagesschau.de/wirtschaft/boerse/kuenstliche-intelligenz-nvidia-100.html
