Posted on Nov 24, 2020 at 7:01 am
Allergic to risk, French savers? Not so sure. The financial market crisis at the start of the year did not scare households away from the stock market. Instead, attracted by falling valuations, they bought € 4.1 billion in stocks in the second quarter, increasing their investments just as markets began to rebound, according to data from the Bank of France. The French also invested in funds specializing in equities, to the tune of 3.1 billion, after three consecutive quarters of exits. An encouraging sign for the government, which has made “Productive mobilization of savings” one of the priorities of the five-year term and the end of the crisis.
The trend in household financial investments is striking. French savers have not really invested in the stock market since 2012, with average net flows close to zero. The improvement started at the end of last year, in parallel with the much publicized IPO of la Française des Jeux. Its listing had attracted more than 500,000 individuals, tempted by the attractive conditions of the operation. The French have now bought shares directly, via a stock savings plan or a securities account, over the previous three quarters, for more than 10 billion euros in total, for the first time since 2011.