A few bright months
Dark clouds have been weighing heavily on the financial markets for the most part of 2022, affecting the return negatively. The past few months, however, the sky has been clearing up, letting stock markets rise and interest rates fall.
Velliv believes that these recent bright times are caused by a less negative outlook on the future and the possibility of putting a stop to the rising inflation rates. The financial markets thus now expect that it will not take as high increases in interest rates to beat down inflation. And that is very positive news for financial markets around the world.
By the end of September, Velliv’s customers with VækstPension Aktiv, a medium risk and 15 years or more until retirement had a negative return of -16.2 pct. Same return had positively changed to -10.8 pct. at the end of November, emphasizing the more positive outlook of the past few months. Over 5 years, the return makes up 25 pct., and over 10 years, it makes up more than 100 pct.
The level of uncertainty remains high
In Velliv, we believe that we are entering fluctuant times, and we expect that there will be both positive and negative periods during the next six months. Much will depend on whether we see permanent signs of the inflation withdrawing. In USA, we have seen the first signs of this, however, in Europe, inflation rates continue to rise. We monitor the development closely and are ready to adjust our portfolio to the current market situation.
We recommend that you stick with the risk profile you already have. Experience shows that it is extremely difficult to hit the right days in a turbulent market. And at the moment, things can quickly change and go either way.