Three things to note from Björn Wahlroos – “There has never been a situation like this in my entire life”

According to economic influencer Björn Wahlroos, there are currently three developments that are particularly interesting from an investor’s point of view. The withdrawals made from Wahlroos’ speech have been published first In Mandatum magazine.

The first thing Wahlroos points out is the development of interest rates, especially in the United States. Wahlroos considers it largely certain that, in the short term, dollar interest rates will fall. On the other hand, long-term effects are more difficult to assess due to, for example, the development of the inflation level.

In addition, Wahlroos considers it possible that the dollar will weaken further as interest rates fall.

In the world of monetary policy, the fact that US President Donald Trump will appoint a new head of the country’s central bank in the near future also adds to the excitement.

The role of energy is emphasized

Another thing that Wahlroos brings up is energy, the importance of which is manifested through world politics. World politics, in turn, is especially on the surface now, Wahlroos believes.

“There has never been a situation like this in my entire life – nobody seems to be interested in anything other than world politics.”

In world politics, energy dictates a lot. China is a large net consumer of energy, while the United States directly and indirectly manages a large part of the world’s oil reserves, Wahlroos explains.

A tangible example of the connection between energy and world politics is Russia, a large part of whose income has depended on oil exports.

“With the large supply of oil driven by the United States, the price remains quite low, so Russia’s economic worries also continue. Russia has significantly higher production costs in its oil industry than, for example, Arab producers,” Wahlroos reflects.

Partly due to the price of oil, Wahlroos believes that Russia’s influence in world politics has decreased. In addition, the war in Ukraine is consuming Russia’s resources quickly, and economic sanctions are disciplining the country’s income side.

“It is interesting that the United States has been able to pick countries after another country out of Russia’s sphere of influence. Russia has exhausted its resources when Trump has shown the strength of the technological progress and professionalism of the United States,” says Wahlroos.

The biggest increases were seen in the defense industry

The third trend that Wahlroos highlights is taking place in the defense industry. The industry has seen hectic growth for several years, among other things due to European armaments.

According to Wahlroos, however, the biggest increases have been seen in the defense industry. Now, according to Wahlroos, the focus should be directed from the traditional defense industry to defense technology companies.