Pessimism spreads among investors due to inflation and the war in Ukraine

Despite the fact that the financial markets began to show the first signs of recovery at the end of 2020, once the lockdowns due to the Covid-19 pandemic ended, the war in Ukraine and its impact on the global economy has once again reduced confidence of investors, as indicated by the quarterly index of confidence of the Spanish investor of JP Morgan Asset Management. The negative perception and uncertainty regarding the economic evolution is already reflected in this sense, with the manager's index in negative values ​​during the second quarter of 2022 (-0.2) after six consecutive quarters with positive values. Since the 'shock' suffered by the stock market in March as a result of the invasion of Ukraine, confidence in the stock market rose slightly during April and May as a rebound effect. However, since the index reached its all-time high in the second quarter of 2021 as a result of the spread of vaccines and the return to normality after the pandemic, the outlook has progressively diminished to negative during the second quarter of 2021. "The pessimistic trend in equities was clear from the all-time high reached by the index just a year ago," says Francisco Márquez de Prado, Sales Executive of JP Morgan Asset Management for Spain and Portugal. This paradigm shift is reflected in the decrease in the intention to invest directly in the stock market compared to the first quarter of the year, both in the stock market (-1.6 points), as well as in investment funds (-1.5), pension plans (-1.2) and real estate assets (-1.2). On the other hand, they raise the attractiveness of deposits and interest-bearing savings accounts or passbooks by 2.4 points, although, compared to last year, the number of people who will not invest anything in the next six months increased from 18 to 21%. according to the JP Morgan survey. In addition, the number of investors who declare themselves pessimistic regarding the evolution of the stock markets now accounts for 38% of the total, 14 points more than six months ago and 20 points more than a year ago. Related News standard No Economists predict that Spain will enter a recession next winter Bruno Pérez They assure that after a summer of strong activity due to the summer tourist campaign there will be a break that will leave the growth of the economy at 3.9% this year and below 2% next year In the case of long-term investments for retirement, the index indicates that 45% of Spanish savers and investors do not consider dedicating additional efforts to complete their future retirement. it. Of the 55% that do, the majority opt for private pension plans, while investment funds are the second most chosen option, followed by company pension plans.

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