Spanish families spend more and more of their money on financial assets and appetite for the risk it grows with the rates at 0%. Experts advise not to get carried away by the swings of the markets
Although the financial culture is still not in school (and should), Spanish society advances in the domain of knowledge necessary for money management. Despite being behind the European average in these skills, the 2008 crisis forced the population to take care of savings (today accounts for around 5.1% of gross disposable income), to pay more attention to their economic resources ; improve financial habits and more rigorously select who delegates money management. Learning from culture has allowed citizens to recognize that financial assets are a useful tool for channeling their wealth from the Savings towards investment products. They know that with inflation around 1.7%, if they want to obtain a return on money, risk, that ingredient that differentiates savings from investment, must exist, especially with interest rates at 0% . The investor now has a little more appetite for risk and its time horizon expands.
Thus, Spanish families are betting more and more on investment in financial assets, while maintaining a generally more conservative profile than that of other European or Anglo-Saxon peers. Thus, with data for the first half of this year, they had 2.20 trillion euros in financial assets, the historical maximum. Although deposits represent 37% of their total investment, the percentage of cash stands at historical lows (2.7%). Collective investment (investment funds) and pension plans earn a whole after the crisis, as does direct investment (stock market and fixed income). The Bank of Spain calculates that the net financial wealth of families and non-financial companies, measured by the difference between the savings they accumulate and the debts they have, It stood at 1.41 trillion euros at the end of June, 2.3% more than a year ago.
In this context and facing 2019, investors must take into account, first of all, what their profile is, based on the desired profitability, the risk they are willing to assume and the time horizon. Once defined, they must know that there are doubts about whether or not the international economy is facing a change in cycle (for bad). Also, that everything points to the interest rate of 0% has its days numbered, before the tightening of monetary policy by central banks. In this scenario, markets, especially equities, may continue to be dominated by uncertainty and volatility. Given this, the experts consulted (see following pages) advise clinging to the defined investment profile and not moving through the vagaries of the market. In addition, it is convenient to trust a manager, especially if you are not a qualified investor. For this last case there will always be opportunities to win or lose money. In general, analysts believe that the bags most attractive are the European, the Spanish among them
For a conservative profile, they recommend concentrating on fixed income and complementing the portfolio with investments in equities, alternative management and some foreign currency and raw materials.