Financial analysts featured on the Spanish programme El Podcast de Webpositer have warned that savers are facing an absolute emergency, saying that anyone who fails to act now will be left behind for years to come.
Since 2020, Spanish households have lost 25% of their purchasing power, the analysts said, blaming the direct impact of inflation and the monetary policies pursued by central banks.
The analysts described the current situation as a "K-shaped economy," in which two groups move in opposite directions: those who grow their capital in financial markets, and those who watch their savings lose value sitting in current accounts. With traditional bank deposits paying as little as 0.15% interest, the analysts said savers urgently need to find options that return more than 3% simply to avoid losing money in real terms.
Alternatives to beat rising prices
Faced with the inertia of traditional banks, the remunerated accounts offered by neobanks were presented as a first line of defence for protecting available capital. These accounts pay interest linked to European Central Bank rates and carry the same Deposit Guarantee Fund protection as traditional banks, up to 100,000 euros. The analysts said this option allows savers to generate short-term returns with the same level of security as long-established banks.
For longer time horizons, the analysts pointed to diversification through index funds or exchange-traded funds (ETFs) as the most accessible strategy. Making constant, regular contributions, a method known as Dollar Cost Averaging, makes it possible to average out the purchase price without needing to time the market, they said. Over periods of more than ten years, the analysts added, global portfolios such as the MSCI World index reduce the risk of permanent losses to practically zero.
The role of gold and the property market
Gold and other precious metals were described as another fundamental defensive pillar for protecting wealth against currency depreciation and rising public debt. The analysts recommended investing in these assets through liquid instruments such as exchange-traded commodities backed by physical gold, rather than taking on the costs and complications of storing gold at home. They also pointed to Spain's property market, citing an estimated shortfall of 700,000 homes in the country as a source of opportunity.
Direct financing to property developers was highlighted as a way to secure double-digit returns in under two years. The analysts said they preferred investments that were far safer and still offered double-digit returns, contrasting this approach with the volatility of certain technology stocks. They also identified artificial intelligence and blockchain technology as the two major transformations that will shape the economy in the coming decades.
Investor psychology and false gurus
Telling the difference between the day-to-day volatility of asset prices and the real risk of losing capital is essential to avoid making decisions driven by euphoria or fear, the analysts said. Experienced fund managers cautioned against promises of quick profits in trading and the spread of misleading investment content on social media.
The analysts said that 90% of the people offering investment advice online had never actually earned a living doing it themselves, yet felt comfortable telling others how to do so, and urged savers to check the professional track record of anyone giving investment advice.
Long-term financial success, the analysts concluded, rests on consistency, financial education and building a plan suited to each individual's circumstances. Those who have led investment funds stressed that beating inflation requires method, caution and an appropriate time horizon, allowing savers to protect their financial wellbeing against major shifts in the market.
