Caser Asesores enlarges its network of agents in Madrid with Álvaro Sevillano, former head of CoreCapital

He ceased as president, general director and director last spring when he clashed with the Ballvé family (Campofrío).

Caser Financial Advisors offices.

Caser Financial Advisors reinforces its network of agents in Madrid with the incorporation of a heavyweight in the industry, Alvaro Sevillanowho until a few months ago was the head of the family office CoreCapital Finance.

Sevillano, who co-founded CoreCapital, stepped down as chairman, CEO and director last spring colliding with the Ballvé family (Campofrío), main customer of family officeas reported by this newspaper.

With more than 15 years of experience in the sector, Sevillano had previously worked in other relevant positions, as an independent professional at Bankinter, advising large assets, and at other entities such as Banif Banca Privada, Morgan Stanley, Caixa Banca Privada, Lloyds TSB Bank and Deutsche Bank.

The new signing comes to join the team of more than 35 financial agents that are part of the network specialized in financial advice that the Caser Group launched in 2019 and that it directs Helen Calaforra.

Thus, professionals such as Javier Ballarat, Álvaro Merino, Reyes Barquero, Susana Checa, Juan Pablo Ordovás or Mario Durán, among others, have joined the specialized entity in 2021, which closed the 2020 financial year with a net growth of 185 million euros and more than 800 clients.

The popularity of bitcoin changes the focus for its control: from the veto to the firewall

Cryptocurrencies have become an asset followed by masses of investors around the world, which is becoming increasingly difficult to fence.

A coin representing bitcoin breaks through a wall.

The efforts of the institutions to have control of bitcoin they change their accent. The unstoppable diffusion of cryptocurrencies has turned the focus on its regulation from the formulation of vetoes towards the introduction of firewalls between them and the world of traditional finance.

Given the evidence that these digital assets enjoy a growing popularity and proof of its huge price lurches, more voices and higher reputation advocate for this paradigm shift. The ultimate goal is that the expansion of cryptocurrencies that have failed to stop bans in force in various countries of the world does not end up becoming a risk for the financial system.

The most significant change of direction in this sense has just been given by the International Monetary Fund (IMF). In its latest study on the evolution of cryptocurrencies, the organization opts for this formula as the best way to save traditional finances from any shock that can be produced in bitcoin, ethereum or any of its little sisters.

Risk of contagion

Those most enthusiastic about these digital assets present this change in focus as “an acknowledgment of their ability to challenge the traditional financial system”, as defended by an operator of this market. However, the truth is that the IMF’s concerns have exactly the opposite motivation, as it states that “crypto assets are no longer outside the financial system.”

The institution’s warning is clear. If what you want is to avoid risk of contagion between the financial markets”, it is urgent that a “comprehensive and coordinated” regulatory framework be established at a global level that addresses this issue. And it is that the fact that cryptocurrencies are part of decentralized structures and without physical location makes it difficult for national vetoes to be effective for this pressing purpose.

In this sense, the truth is that every time a country has proceeded to totally ban cryptocurrencies or any of its uses, the measure has translated into more volatility for its price. The most recent cases have been Turkey Y Russia. In both cases, the price lurches caused by their vetoes have been pointed out precisely as arguments to justify their categorical decision.

The person in charge of one of the most well-known Spanish digital asset platforms explains that, “if this paradigm shift were put into set phrases, it would mean going from making an effort to put doors to the field to build firebreaks so that, in the event of a fire, the damage is as limited as possible”. Something that he considers much more executable and positive.

No diversifying effect

Precisely, from the IMF it is warned that “cryptoactives such as bitcoin have gone from being a class of dark assets with few users to an integral part of the digital asset revolution”. A spread that, as he explains, has increased in tandem with “a growing interconnection between virtual assets and financial markets”.

It is this parallelism between popularity and correlation with traditional investment assets that has pointed to the need for these firewalls. And it is that the data collected by the institution in its study underline that “its correlation with stocks has become higher than that of stocks and other assets such as gold, investment grade bonds and major currencies.

Beyond questions of use, this link between actions and cryptocurrencies is what already “generates concerns on financial stability. Even more so because many of those who entered these digital assets in the early stages of the pandemic did so looking to diversify the risk of their portfolio and now they find that their most recent evolution proves the opposite.

brussels earrings

While the regulation of the sector in Europe through the directive Mica (of English, Markets in CryptoAssets) is delayed, this change of focus seems to bless the line that was being worked on, albeit very slowly, in Brussels. In this sense, it is foreseen that the norm leaves outside its scope issues relating to the use of tokens as a means of payment and other factors such as mining.

Instead, the emphasis will be on pointing out clear rules of the game for the operation with crypto assets, their exchange and issuance through initial offers (ICOfor its English acronym).

The question is whether, while more and more citizens entrust part of their savings to these assets, the introduction of new licenses and supervision requirements will be enough firewalls up on time between this world and that of the old finances.

Take your pick: stagnation or inflation, but not both.

In the more than ten-year drought of financial misery, many analysts and advisers have grasped at inflation like straws.

Euro bills.

For ten years now, the way to attract attention in the markets is to announce some kind of financial misfortune. A crisis, a bursting bubble, or any other scary issue that generates followers or clients looking for protection. Although the funniest thing is that, in the end, it was neither a financial crisis nor a bursting bubble that caused Armageddon, but a virus from China.

So, with a more than ten-year drought of financial misery going on, many analysts and advisers have seized on the inflation like a burning nail, assuming, from the outset, that inflation is always bad for the economy or the stock market, when history shows that it depends on the level of inflation.

And then, taking advantage of the problem posed by the bottlenecks of the restart of activity, they have included in the “pack” the economic stagnation. Stagnation plus inflation: what can be scarier? If that doesn’t make all potential clients seek your protection, nothing will.

So, if you allow me to be politically incorrect, I will tell you that, at least on this occasion, it seems difficult to me that both horsemen of the apocalypse coincide. The one of stagnation is neither there nor is it expected. The one with inflation, yes, but he will probably stay as a rider for good, without reaching the level of horseman of the apocalypse.

Of course I agree that inflation is going to be higher than it was before the pandemic. I said it a long time ago: the closest thing to getting out of a pandemic and a global lockdown is getting out of a war. And the two world wars have come out with more inflation. If we add to this that never has so much money been injected into the system and that the stimulus plans make the Marshall Plan, it does not take a genius to realize that inflation will be higher. Probably quite higher.

The closest thing to getting out of a pandemic and a global lockdown is getting out of a war. And the two world wars have come out with more inflation

But those who trust that we will return to 70s or 80s-type inflation levels make the same mistake as when they spoke of the “Chinese Lehman”: they are making a comparison that is based more on desire than reality. Of course there are inflationary elements. And that we are going to have a serious problem with energy, since the cost of the energy transition has not been properly assessed. But the weight of energy in inflation today is not comparable to the 1970s. Then it was 9% and today it is 4% (US PCE)

But, above all, they forget that we are still in the middle of the industrial revolution, in this case the digital one. I don’t have space to explain why, but believe me: all industrial revolutions have been disinflationary. And this is no exception. The digital revolution will act as a buffer in the prices of services.

Of course there will be salary pressure, we are already seeing it. But precisely that helps to avoid the arrival of the other horseman of the apocalypse, the one of stagnation. People having money in their pockets is good for growth. And since we are talking about growth: although it will be artificial and the result of monetary and economic stimulus, there will be growth.

The predictions of organizations with a good predictive history – that is, I do not include the IMF – speak of global growth for the coming year of more than 5% and around 4% in 2023. But, even if it were 3% – that would already be wrong -: it cannot be called stagnation.

Those of us who advise investors and savers must prioritize objectivity and realism over the search for the “like” or the “retweet”

In the end reality spoils a good tweet. And the reality is that it seems difficult for the doomsayers to achieve the carom of stagnation plus high inflation.

Those of us who advise investors and savers must prioritize objectivity and realism over the search for the “like” or the “retweet”. And the first and fundamental thing when defining an investment strategy is precisely to be clear about the macroeconomic picture. And for that you have to be realistic.

Those who anticipate stagflation are telling investors the same thing they told them when they were told about crises and bubbles: avoid equities. But, given the record rise in stock markets in the last 10 years – and especially in the last 20 months – think twice before following that advice.

Remember that only high and persistent inflation is bad for equities. And for the record, as independent advisors, we do not charge more for recommending equity funds than for recommending funds that invest in gold or leave the money in a checking account. Right or wrong, our advice is totally free of conflict of interest.

*** Víctor Alvargonzález is an independent financial advisor and founding partner of Nextep Finance

Invest in cryptocurrencies before the wave of the ‘millennials’

The theory of generational financial investment indicates that you have to follow digital assets.

Image of a bitcoin.

I have been in the international financial industry for more than 20 years working mainly in European countries. In Germany, I was introduced to the theory of generational financial investing which has led me to become interested in digital assets.

Generational financial investments are based on cycles of approximately 20 years led by a generation. Each leading generation has a differentiating asset. In the case of ‘Generation X’, it was the Internet; in the of the baby boomersconsumption.

Each of these generational cycles experiences a period of growth where the investment is progressive until it reaches its maximum point or peak year, which is the one in which its influence begins to decline. To illustrate it with an example, let us see how the cycles led by the baby boomers and ‘Generation X’.

The first takes place between 1981 and 2000, and its main investment asset is consumption: it is the time of large companies such as WallMart or Home Depot. After 20 years, the initial investment of $1,000 would have been worth $1.17 million. A revaluation similar to that experienced by the internet with values ​​such as Google or Facebook between 1997 and 2017.

The same is true today with millennials and technology blockchain, which according to our studies will triumph among this emerging generational group. Your main financial asset will be tokens or digital assets.

We are currently at the beginning of the cycle, in a temporal sense. We’ve only been three or four years in development. Furthermore, the generation millennial it does not yet influence the price of bitcoin. Most of the capital invested in BTC and cryptocurrencies still belongs to Generation X. The definitive wave is missing.

The moment when they millennials have greater purchasing power, the influence of revaluation of these assets will grow. You have to wait a while for them to reach better jobs and therefore increase their income. Another key factor will also be the intergenerational transfer of wealth.

According to Forbeswe find ourselves in a historical moment, that of largest money transfer in history. The 68 trillion dollars owned by the baby boomers they will be gradually transferred to their children in the coming years. these children, millennials For the most part, they will be the next investors and we have no doubt that a large amount of that wealth will go to cryptocurrencies.

The 68 trillion dollars owned by the baby boomers will be gradually transferred to their children in the coming years

What is clear is that the boom of cryptocurrencies has no going back. These assets have a long way to go until they reach a more balanced valuation – their capitalization today only represents around 10% of the total value of gold, with which, according to many experts, it can compete as a refuge value – with respect to the rest of the large segments of investment such as the stock market, fixed income or housing.

We estimate that this cycle of blockchain will last until the year 2038 and that, in 2028, the value of bitcoin could reach 500,000 dollars. For its proper development, volatility is a key factor, but what is truly important is knowing how to manage it.

As the market matures and digital assets are clearly regulated, the level of volatility will decrease. By 2035 it will be similar to that of the S&P 500. At that time, blockchain and digital assets will be commonplace, as is the Internet now for everyone. Regulatory development is the key way for it to become a widely used technology.

This does not mean that the same cryptocurrencies will remain, the safest thing is that 95% of those that make up the current market will have disappeared, as it is that the future unicorns have not yet been presented.

As of today, what is clear is that the digital assets market is divided into three large groups: digital property, digital platforms and decentralized applications. Predictably, the latter will prevail, but in the meantime, investing exclusively among the 20 most in-demand players is an effective way to gain positions and experience. It is a good method to anticipate a generational investor change that has been taking place with mathematical precision every twenty years.

*** Alberto Gordo, CEO of Protein Capital.

Saving is owning our future

The AEB spokesman values ​​financial education at a time when central banks have generated financial repression that affects savers.

Saving is owning our future

Saving means stopping spending today to be able to do it in the future, either because we have a specific consumption goal or the purpose of preparing ourselves for needs that may arise later and thus face uncertainty more comfortably. But it’s not just that.

Saving is a deliberate and planned act. The impossibility of spending, as happened to us during confinement, should not be considered savings in the strict sense, since everything indicates that the future return to economic and health normality could lead to the materialization of an important part of that consumption that was not carried out, that was dammed up and is now starting to break free. Saving is not just accumulating reserves either, is to make them profitable tooso the return offered by the different types of assets at any given time is a determining factor.

In Spain, more than 40% of the financial assets of families are in cash and deposits. This is a very high percentage, but in line with what is happening in Europe given the existing imbalance between the profitability of safe assets and that of those that carry risk, and which is not surprising, especially if we take into account that the alternative in terms of security and trust to deposits is public debt, largely with negative returns.

The rest of the distribution of financial assets of Spanish households are shares in the capital of companies (25% of the total), insurance and pension funds (16%) and shares in investment funds (15%). This last segment is the one that increased its weight the most in the last year, in line with the revaluation of the financial markets due to the greater economic certainty after the pandemic.

In Spain, more than 40% of the financial assets of families are in cash and deposits

In Spain, housing is the main patrimonial decision of families, a behavior that goes beyond a pure financial decision. In this country of owners, the population’s commitment to housing as the main savings and investment formula is more than evident, a trend with little sign of changing, despite the warnings from the IMF, which a few weeks ago underlined the upward spiral of house prices worldwide, as a result of low official interest rates and inflation in some financial asset markets.

Against this background, financial assets are the ones that best respond to the three principles on which saving is based: availability, consistency and profitability.

Following the first principle, availability when materializing our savings, will offer us the room for action in times of need. If we save to have money to meet a future need, it is essential that we can dispose of it easily and quickly.

Paying attention to the second principle, consistency, is essential to comply with savings planning and protect ourselves against impulses encouraged by the information age in which we live. Although digitization provides us with information for analysis in real time, it also requires a calm approach to our desires and needs: impulses should not dominate our financial decisions.

The third principle, profitability, is not an objective in itself when it comes to saving, but it does condition what the savings are used for. At this point, the financial repression generated by the low interest rates set by central banks accentuates the inflation of financial assets and the risks when investing.

How should we save? And how can we ensure our savings? There is no specific and universal answer to these questions, but there are some guidelines that can help us along the way.

The financial educationespecially if acquired at an early age, and good professional advice adjusted to our saver profile can help us make the best decision at all times, although they are not a guarantee of success in all cases.

We all make decisions freely and are responsible for their consequences, so calmly analyzing all the necessary information available contributes to the proper management of our personal finances, to better managing our money, something necessary at all stages of life.

On the contrary, we must not let ourselves be carried away by unfounded recommendations or by impulses or currents of opinion. Neither should we be sinful of risk aversion or of an excess of confidence that leads us to make hasty and poorly thought-out decisions. Even if we were right, we would not know how to argue it and we could create a bad habit that would cause us problems in the future.

The individual savings goals they are as personal as their vital priorities and their scale of values. Education and training, ours and our children’s for example. In addition, in a world dominated by innovation, it should be a priority to invest in financial education to provide future generations with the best tools to react to a world that is constantly changing. For the good of their individual decisions and of society as a whole.

*** José Luis Martínez Campuzano is spokesman for the Spanish Banking Association.