Investment appetite has skyrocketed during the pandemic. Many novice users look to the coronavirus crisis for an opportunity to make money on the stock market. This is confirmed by the fact that Internet searches related to “buying stocks on the stock market” have soared as much as 175% between March and April compared to the previous two months, according to a study by Investing.com.
Searches that include the terms “buy shares” and “how to invest in the Ibex 35” have also grown, 124% and 125.64%, respectively. If we compare it with the same period of the previous year, the figures shoot up to 444.4% and 892.86%, respectively.
“The coronavirus pandemic has brought us steep declines and unprecedented recoveries. And in addition, it has aroused the interest of a new wave of investors who, given the collapse of the markets, have felt attracted to the investment world»Say the experts of the investment website.
Within the Ibex 35, the values that arouse the most interest among new investors are IAG, BBVA, Banco Santander and Pharmamar. In the case of the airline conglomerate, one of the companies most affected by the coronavirus crisis, searches have grown by more than 674% between March and May. Regarding international values, users focus their attention on pharmaceutical companies such as Gilead Sciences, Modern or Inovio –all of them participate in the race to find a vaccine against covid-19-.
Interest in investment in times of crisis has also grown exponentially globally. Searches that include the words “securities to buy”, “how to invest in the stock market” or “stock markets” increased on Google by 278.26%, 185% and 150.87%, respectively. A trend that grows exponentially if we compare it with these same searches carried out in March and April 2019.
Analysts recall that after the heavy punishment suffered in the first quarter of the year, the main world markets have already begun to show signs of recovery. The S&P 500 closed the best quarterly balance since 1998, with a quarterly gain of 19.95%, the Dow Jones of 17.77% and the Nasdaq of 30.63%. In Europe, the Ibex 35 has recovered more than 9% in the second quarter of the year, but it still accumulates an annual drop of 24.5%.
A recent ING report also confirms that 17% of investors took advantage of the coronavirus crisis to increase their investments, while another 19% undid positions and the vast majority, 64%, kept them unchanged.
The profile of that 19% of Spanish investors who sold during the crisis, corresponds to the youngest, who have seen their income reduced, and who have little financial knowledge, but who do not allow themselves to be advised. On the contrary, 17% of the investors who decided to increase their investments during the crisis are men between 35 and 49 years old, who have not suffered a loss of income, and who have financial knowledge.
According to the study, Spanish investors define themselves as cautious or extremely cautious. They invest mainly in mutual funds and stocks, in the medium and long term, and consider that they have little financial knowledge.