Sustainable investment is in the focus of attention of large fund managers. A trend that is driven by public sector initiatives to achieve the goals of the Paris Agreement and the Sustainable Development Goals.

On the part of investors, including the incorporation of climate transition factors in investment decisions, there has been strong growth in the use of ESG approaches: A (environmental), S (social) and G (corporate governance).

At the same time, ESG investing has become a leading form of sustainable financing for long-term value and alignment with society’s values, and has evolved from its earliest stages of development to mainstream investment.

The environmental score of the “A” pillar of the ESG rating is increasingly used as a tool to align the investments with a low-carbon transitionand in principle could help uncover valuable forward-looking information on companies’ climate transition risks and opportunities.

In addition, a number of financial market products and practices have emerged to align capital flows with the low-carbon transition. These cover instruments for issuers, third-party ratings, principles and guidanceas well as index and portfolio products to help channel funding to entities in transition, and better price transition risks and opportunities.

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Inflation is an important consideration when it comes to valuing our savings or the fruits of our investments. The fear of inflation is not undeservedas it can be challenging for both investors and consumers.

And this is the present situation. Price levels have not stopped climbing. Today, according to CPI data, estimated annual CPI inflation in March 2022 is 9.8%according to the advanced indicator prepared by the INE. This rate would be the highest since May 1985.

Depositors come from a time of zero remuneration and a boom in commissions by the banking sector and, to make matters worse, they are highly affected by inflation, since it has a direct and indirect impact. The direct hit is when savings are devalued because the cost of living has increased. The indirect impact is when savings are affected because purchasing power has decreased.

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Cryptocurrencies have become an increasingly popular asset class among retail and institutional investors.. Although initially considered a fringe asset class, its increased adoption across countries, particularly in emerging markets, amid bouts of extreme price volatility has raised concerns about its potential implications for financial stability.

In September 2022, for example, Bitcoin and Ether ranked in the top 20 traded assets in the worldcompeting with the market capitalization of some of the largest companies in the world.

Due to the fact that prior to the pandemic, the US stock market had marked a clearly upward trend since the appearance of cryptocurrencies, it was difficult to assess how these assets behave when the market tide behaves violently and great volatility appears. Today there are studies as the last one prepared by the IMF which give a broader view of the existing correlations between the stock market and cryptocurrencies.

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In times of war, marked volatility may appear in the market depending on who the participants are. And not all investment profiles enjoy the same tolerance for price swings.

If we focus on the current Russia-Ukraine conflict, the first thing to note is that these two countries represent 2% of global GDP.

Due to the reduced weight of these economies, there are no fundamental fundamentals to worry about the valuations of our investment portfolio.

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