after summer
The biggest revaluations happened after the summer, while the media gave less attention to the rise than in prior years. This quieter coverage followed a season of political overload after elections and ongoing conflicts such as Ukraine and Gaza, which shaped investor sentiment.
There isn’t a large amount of data on how popular investing in the stock market is among households. The End Family Financial Survey, a document published by the Bank of Spain, references 2020 findings: 12.3% of Spanish households own publicly traded shares. When scaled to the total number of homes in Spain, that implies about 2.3 million households and around 5.8 million individuals exposed to equity risk if the average household size is applied. Since 2002, both the number of households and the share of people taking equity risk have risen steadily. (Source: End Family Financial Survey, Bank of Spain)
Last year, amid a period of rising interest rates, emphasis focused on information about growth in investments, public debt, and the search for attractive returns with relatively low risk. Yet the stock market remained a less reliable option for many in the general public, with high commissions and a more complicated income tax process weighing on participation and confidence.
Investor profile
A recent study on the profile of stock market investors in Catalonia, conducted by the investment and trading platform eToro, sheds light on who actively participates. The research indicates that Catalan investors are typically seasoned in market activities. The average Catalan investor tends to be between 35 and 54 years old, although more than 60% of those aged 24 to 35 have tried investing at least once. In terms of gender, about 58% are male and 47% female, with roughly 73% of prior investors continuing to stay in the markets. Motivations include supplementing income and increasing buying power.
In terms of assets, Catalans favor cash and bank deposits—more than 90% report some exposure—followed by mutual funds, insurance, equities, and real estate. About 14% allocate more than half of their investments to digital assets or cryptocurrencies. (Source: eToro study on Catalan investors)
The spotlight on 2023 also drew attention to declines in certain sector giants and a loss of confidence, followed by a quicker rebound that drew less media attention. As of the year, Bitcoin has surged about 150% in value, yet the broader regulatory and intermediary environment remains cautious about listings tied to risk and instability, especially until cryptocurrency markets gain robust regulation or involvement from commercial banks. (General market observations)
Analysts do not expect a markedly more precise forecast for 2024 than in prior years. The consensus suggests that geopolitical tensions and high interest rates will pose key risks. (Market outlook)
Mercer, a consultancy, notes that as global growth slows in 2024, inflation pressures driven by demand may ease, moving global inflation closer to central bank targets. Whether this translates into widespread stock market gains remains uncertain. The Bankinter report also indicates that the banks whose shares performed strongly this year are unlikely to be part of portfolios in 2024. Yet despite divergent views, many economists and analysts continue to debate the outlook well into the following year. (Sources: Mercer, Bankinter)