While the business world throws itself into the metaverse, Spain locks itself in its “miniverse”. And if as an investor you think that these things of the future do not affect you, please read this article.
Spain was late to the industrial revolution and the consequences still endure. More recently, the indolence of our politicians meant that we were also late to the digital revolution. We are paying the stock market consequences right now. In the last ten years, the S&P500 He has taken more than a 200% advantage over IBEX 35 and the technological index nasdaq He has taken 600%. It is clear that arriving late, badly and dragging to the great economic changes has stock market consequences.Now the metaverse arrives and we are going to be left out again. Why? Because The Spanish economic priority is not to promote entrepreneurship, it is to promote the civil service. It is not about supporting SMEs and the self-employed, but about increasing their taxes, their regulations and their bureaucratic burdens. And that does not exactly facilitate the creation of leading technology companies.And what is the “metaverse”? Well, it’s the Internet raised to the 10th power. If the Internet is a space for the exchange of information, messages, videos or audios and its most advanced expression is videoconferences, the metaverse is the creation of a complete virtual world.
Today the best -and only- way to invest in the metaverse is by using third-generation funds, the so-called ETFs.
I do not have space to explain it in detail and it is also not the main object of this article, but get used to the idea that you will be able to have almost physical meetings, carry out financial and commercial transactions of all kinds and almost everything that you currently do in reality just by putting on glasses similar to the ones we normally wear.
And, mind you, I am not saying that this is good or bad or that it is good or bad for humanity: I am saying that it is one of the most important technological changes in many years and that it is a bad sign for our stock market that our politicians are to other things.
Staying in our “miniverse” will not only lock us out of the metaverse, it also keeps us from participating in businesses like cloud computing, Artificial Intelligence, and of course technology. blockchain, because everything is intimately linked, everything leads to the creation of a parallel world from which we Spaniards will not benefit. That philosopher already said it on a bad day: “Let them invent”. And so it goes.
To think that an action planned by the State is the solution is to forget that what led the United States to lead the digital revolution was Silicon Valley, not a communist five-year plan. not even in China it is the State that decides which specific technology companies are going to have access to more resources.
Putting barriers on ETFs in general has the secondary effect that we cannot participate even as passive investors in the big technology business of the future
But the bloodiest example of all of the above we have precisely in the world of investment. Nowadays the best -and only- way to invest in the metaverse is using third generation funds, the so-called ETFs (traded funds). And, of course, the best ETFs to invest in the metaverse are North American.
But what a coincidence: here those ETFs cannot be traded among retail investors. And if someone could do it, the second barrier to entry would be activated, which is that, although ETFs are as much an investment fund as any traditional fund, they do not have the tax advantages of traditional investment funds, which limits their attractiveness to the public. usually.
And these barriers, why? Well, because, in addition to being better in everything than traditional funds and reaching markets that these do not reach, ETFs are much cheaper. That means they leave much less commissionto distributors, that is to banks, broker-dealers and non-independent financial advisers.
Thus, putting barriers to ETFs in general has the secondary effect that we cannot participate even as passive investors in the great technology business of the future. As the Anglo-Saxons say; You have to look at the signs written on the wall. And those on our wall are very bad when it comes to investing in the Spanish stock market.
*** Víctor Alvargonzález is an independent financial advisor and founding partner of Nextep Finance