While the effects of the corona crisis are raging, and the stock market is rising, our manager Even Krohn-Pettersen is asked by Finansavisen about the prospects ahead.
Even the answer begins by pointing out that the virus itself, the pandemic, and the development of these are very uncertain. Although the experts can comment on the probable mutations of the virus and the like, the course of the spread of infection and death will depend on many unknown factors.This again means that even if the analysts are good at calculating the economic consequences of a slowdown in production and value creation, it will be all the more difficult to say anything concrete about a possible boom, new medicine or new vaccine.
All of these factors are exactly what investors and the financial market are trying to price in at any given time, which has led to the stock market crash we have seen recently. This means that the stock market has become cheaper and all the more attractive to investors. Even believes that the long-term investor should be invested, especially now that some companies and sectors appear to be attractively priced, but that one should have a somewhat more prudent portfolio than otherwise.
Read the stock exchange interview here:
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