Poverty reduction may be a consequence of the democratization of the stock market and the growth of demand for various assets from private investors, said Russia Calling! During the VTB Capital forum. Dennis Debusche, founder, president and chief strategist of 22V Research.
“The democratization of investments and the reduction of poverty as a consequence should be a consequence of a long-term approach to the choice of assets, because the whole world gets access to various assets and if people choose them correctly and hold them for a long time, this is correct. If investments become just a way of gambling, then, of course, this is the opposite effect, and then there is a possibility of increasing the level of poverty, ”he said.
According to Debusche, people from different classes and with different income levels should choose their assets appropriately. For example, young people, according to the expert, have a greater appetite for risk and prefer assets with the highest return on investment.
Yesterday Russian President Vladimir Putin instructed the government to work out measures to protect citizens’ funds invested in securities. In particular, he proposed introducing personal income tax deductions for long-term investments in Russian securities. In addition, the President instructed to work out the possibility of co-financing the population’s savings from the sale of shares.
In 2020, against the background of a decrease in the key rate to a historically low 4.25% per annum, there was an influx of people to the exchanges. Thus, according to the Moscow Exchange, the number of such investors over the past year increased by 5 million to 8.8 million. This increase exceeded the total value of all previous years. By the end of October this year, the number of brokerage accounts of private investors on the trading floor reached 25 million. As VTB reported yesterday, the volume of funds on investment accounts of Russians at the moment is about 9 trillion rubles.
According to Rosstat, in the first half of 2021, 19.1 million people lived below the poverty line in Russia – 13.1% of the population. In the same period last year, there were 19.4 million of them, which is equivalent to 13.2%.
.