The recent boom in the placement of BTP Value has captured the attention of the financial world, sparking a series of questions about the behavior of Italian investors. This new wave of government bond issuance has recorded exceptional demand, highlighting a strong interest in Italian public debt that seems to know no obstacles.
Behind this apparent fervor, however, emerge reflections that deserve further investigation and critical analysis.
Italians still demonstrate a considerable financial willingness to invest in public debt and commit to the State for periods of at least six years: the Italian population seems satisfied with a return, net of taxes, ranging between 3% and 4%, precisely because it is guaranteed. This unshakable trust in their own state drives Italian investors to maintain their commitment to national government bonds, while foreign investors seem to be looking elsewhere, avoiding Italian government bonds.
Such an attitude raises questions about external perceptions regarding the economic and political stability of our country, as well as the long-term sustainability of public debt.
But what is the root of this deep-seated trust? È questo un segno di attaccamento nazionale o piuttosto di una limitata consapevolezza riguardo alle alternative di investimento disponibili? Is this a sign of national attachment or rather a limited awareness of available investment alternatives?
Particularly worrying is the lack of diversification in the investments made by Italians: why not consider the opportunity to include government bonds from other European countries, such as France, Germany, or Spain? Geographic diversification could ensure a balance between risk and return, helping to reduce the risk of overexposure to a single market or specific economic conditions of a single country.
And why wasn’t real return, net of inflation, taken into account before making purchases? And why, if willing to hold securities for a period of six years, were more profitable alternatives not sought for such extended periods?
The crux of the matter is clear: Italians have a poor financial literacy, among the lowest levels in the world
Despite the willingness to invest and the availability of wealth, Italians tend to follow advice from sources that may not be reliable, such as friends, acquaintances, the internet, or to uncritically trust ministerial advertising campaigns, neglecting true industry experts like financial advisors, who could provide more informed and targeted support for their investment needs.
Safe investments that generate high returns do not exist. It’s a general rule: the higher the potential return, the greater the associated risk. When investing significant sums of money, it’s essential to have a complete awareness of the risks involved and to seek to mitigate them. It is in this context that we, as financial advisors, come into play. We carefully analyze your financial situation and provide targeted investment suggestions to ensure the safest and most prosperous financial future possible.
The country is wealthy and ready to invest its savings (the recent success of the BTP Valore leaves no doubts about this): but Italians, attracted by the opportunity of ‘gain’ without full awareness of the risks involved, accept to significantly finance public debt.
This certainly helps the state to solve its own financial problems, but it does not contribute to improving the individual financial situation.