Investors fear the effects of the pandemic to last two years

Spaniards estimate that the negative effects of COVID-19 on the economy will last 1.78 years, in line with investors' forecasts at a global level (1.73 years), according to Schroders' Global Investment Study 2020. 67% of Spanish investors consider that the impact of the economic crisis caused by the pandemic will last between six months and two years, above the average for the European continent (63%).

The study shows that investment concern among respondents has increased. Before the Covid-19 crisis, 37% of Spaniards thought "frequently" about their investments, compared to 53% of Spanish investors who recognized it in the last survey. Globally, this rate has also increased to 49%.

65% of Spanish investors state that they experience "low or non-existent" levels of concern about falling markets in short periods of time, below the European average (71%). However, when stock markets went through a period of volatility in February and March, 76% of Spanish investors made changes to their portfolio in those months, the same level as in neighbouring European countries.

Despite the economic situation, the average annual profitability expectations of the Spanish investor for the next five years remain optimistic, reaching 10%. In fact, the study highlights that Spanish optimism is even more marked than in 2019, when respondents expected their investments to generate an average return over the next five years of 9.2% per year.

These expectations are higher than the European average (9.4%), but lower than other regions such as the American continent, where they expect to obtain an annual 13.15%, and Asia, where they expect to achieve a profitability of 11.46%.

"Spanish investors continue to have 'a priori' profitability expectations that are too optimistic, especially in this environment of low interest rates, low growth and adjusted valuations," said the general director of Schroders for Spain and Portugal, Carla Bergareche.