There was a time when a McKinsey statement was the final word,* these days not so much but I happen to agree with this one.
From Real Time Economics:
We have the gender gap and the income gap. Prepare for the equity gap.HT: FT Alphaville
In less than a decade, the world economy could face too many companies wanting to issue equity and too few stock buyers. The equity gap will change how companies fund themselves in ways that will introduce more risks into the global economy.
Analysts at the McKinsey Global Institute, the economic research arm of The McKinsey Group, looked at future demographics, investment trends and equity needs among 18 nations.
They calculated that by 2020, companies in these nations will need to raise $37.4 trillion of new capital, with equity being the preferred source of funds. But investor demand for equities will only amount to $25.1 trillion, leaves a gap of $12.3 trillion....MORE
"Is McKinsey & Co. the Root of All Evil ?"
Yves Smith Says Nice Things About McKinsey & Co. (they're in the business of propping up diseased managements)