The Bid 219: From Savings to Prosperity: The Global Impact of Capital Markets
May 9, 2025
Samara Cohen, Chief Investment Officer of ETF and Index Investments at BlackRock, dives into the intricacies of capital markets and their profound impact on the global economy. She compares the growth strategies of mature and emerging markets, revealing how these markets catalyze innovation and job creation. The discussion highlights the interplay between banks and capital markets, the importance of transparency and access for individual investors, and strategies to develop robust capital markets that foster resilience and economic growth.
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What Are Capital Markets?
- Capital markets connect suppliers of capital like savers to consumers like companies or governments.
- They act as the mechanism to put cash to productive use, fueling economic growth.
Capital Markets Mature Differently
- U.S. capital markets are mature, with 62% of Americans invested in public equities.
- Emerging markets like Saudi Arabia are building stock markets to diversify local investment opportunities.
Retirement Fuels Long-Term Capital
- Retirement savings are a prime example of long-term capital supply.
- Savers need to invest beyond bank deposits to achieve inflation-beating returns through economic growth.