Jan von Gerich warns stock investors

The market is now seeing big moves as investors chew on significant news. On Thursday, the United States and Iran signed a letter of intent aimed at peace, and on Wednesday the new head of the Fed message surprisingly firmly that interest rate hikes are on the way.

Nordic chief analyst Jan von Gerich told Talousaamu what an ordinary stock investor should take into account in such a situation in his investment decisions.

“The best way to be prepared is to keep a cool head and think about the longer-term drivers on the market,” von Gerich instructed Talousaamu.

According to him, investors should also get used to volatility and the fact that various shocks will significantly move the market in the future. He urges ordinary small investors to accept that there may be plenty of market fluctuations in the future.

“In the midst of this kind of fluctuation, it’s always difficult to think that we should prepare somehow differently now. Even more so, if you look further, the last few years have shown that shocks and crises come almost from a conveyor belt,” von Gerich said on Talousaamu.

The Iran war sent oil prices soaring in the spring, which has weighed on stock markets, especially in Europe. The agreement of intent between Iran and the United States has increased hopes for the achievement of permanent peace, which has also increased the probability that the price of Brent crude oil will not rise to triple-digit price spikes again.

Von Gerich pointed out in Talousaamu that the price of Brent quality has already dropped below 80 dollars per barrel. The price has dropped significantly from its peak reading in the spring.

According to the chief analyst, even drastic changes in oil prices are still possible.

“I wouldn’t rule out any scenarios, but of course price levels of more than a hundred dollars in crude oil seem more distant,” von Gerich commented on Talousamau.

“However, the situation has changed quickly, so it’s worth keeping the options open. At the moment, however, the basic scenario is no longer that the price of oil would rise back above one hundred dollars,” said the chief analyst.