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How does this war affect my investments?

When the news picture is as it has been lately, we get many questions about what one should do in relation to the investment portfolio. At Noon invest, we believe in an active attitude towards index fund investing. This essentially means that - We believe in index funds as an investment instrument, mostly due to the fact that active investment choices have historically been shown to give a poorer return, on average, than the index. - However, as there are thousands of indices in the market today, one must make a good number of choices both related to which index funds suit the individual risk profile, but also what an optimal portfolio composition should look like. - In addition, the world, including the financial markets, is constantly changing. We therefore consider it correct and important to have a relationship with how the portfolio composition is in order to take these changes into account. This means that we think it is important to have a portfolio management where we take into account long trends such as - The focus on sustainability - Change in production and demand in the global energy mix - Slowing down (and occasional reversal) of globalization - Change of direction for inflation and interest rates - Increasing concentration risk in some of the leading indices While the above factors can be seen as long-term trends and changes in framework conditions, it is important not to confuse this with "timing" the market. In focusing on "events" in the news picture and the stock market, and hence "time" buying and selling in relation to what effects this is assumed to have, we believe it is a very demanding task. And it is precisely this type of action that makes traditional active management typically yielding worse returns than indices over time. The reason is simply that while no one knows what tomorrow brings, the risk is very high that one misses either on the analysis, reasoning, sales, purchases, or all of the above. We therefore strive to avoid the temptation to "time" buying and selling in relation to short-term events, but rather continuously adapt the portfolio in relation to trends and developments in market conditions. In this week's webinar, we take a look at how war and geopolitical events affect your savings. What does this have to do with interest rates and inflation? How does this affect the economy otherwise? It is difficult to predict the future, but the history books still give us some hints.


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