Direct words from Karo Hämäläin about investing in cryptos: “At some point, it can crack”

The development of the Helsinki Stock Exchange has recently lagged behind many of the world’s stock exchanges, but taking dividends into account, the Helsinki Stock Exchange has produced better in the long term than in recent times. The OMX Helsinki GI index, which takes dividends into account, has approximately tripled in twenty years.

“It’s not terribly good now. If you think that eight percent should come in a year, then yes, that should be more then”, investor and author Karo Hämäläinen says the Markkinaraati program filmed at the Investor 2024 event at Helsinki Messukeskus

“If we are satisfied with the fact that we can triple our money in 20 years, we have to remember that it’s not worth going hunting for huge profits either.”

Hämäläinen highlights the recent crypto boom. The prices of Bitcoin and other cryptocurrencies such as bitcoin started to rise sharply Donald Trump’s after winning the US presidential election. Last weekend, the market price of bitcoin turned to a clear decline, but since then the direction has turned upwards again.

“For [kryptovaluuttojen hinnan nousulla] doesn’t really have anything to do with investing based on company earnings and cash flows. Perhaps the lesson learned from this year is that hunting for big returns is probably nice in a rising market, but at some point you can slip,” says Hämäläinen.

According to Hämäläinen, the United States will be important for the Helsinki Stock Exchange next year.

“If there is a significant level correction in the United States, it will unfortunately be visible in Helsinki.”

Long-suffering to glory

Actian portfolio manager Paavo Ahonen emphasizes the importance of diversification and other fundamentals such as long-term investment. Even if there is disappointment in the background now, there is no need to rush.

“If you think about the Helsinki Stock Exchange as a whole, there are still a lot of ingredients here,” says Ahonen.

of Proprius Partners portfolio manager Mika Heikkilä states that for the year ending in the European economy, a recovery was expected and that it would spread to other places than just the largest companies. However, this did not happen.

“If the companies reach these profit forecasts, which the analysts are now predicting for next year, we will have a quite attractively valued stock market,” Heikkilä states.

In general, according to Heikkilä’s assessment, next year will be colored by the development of the situation in Ukraine and the politics of the USA, but he states that forecasting is difficult.

“In this economic cycle, I would be quite confident that the issues that weighed down the Helsinki Stock Exchange are beginning to be found, Heikkilä says, and notes that the Helsinki Stock Exchange could be weighed down next year rather by something new, such as a total decline in the US stock market.