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  1. Statement of non-causality

    You’re excused if you feel like celebrating 2021. In financial markets, a lot of people made a lot of money from risky investments like stocks and corporate bonds. Presumably risk-free investments like US Treasuries, or moderately risky investment grade bonds, produced large losses.

  2. Notice to shareholders Pareto plc

    The supplement to the prospectus for Pareto plc has been updated for Taxonomy disclosures for the Sustainable Finance Disclosure Regulation (SFDR).

  3. Extrapolation and learning

    We all know that financial markets tend to exaggerate the importance of new information, overshooting or undershooting. If things look rosy, there’s no limit to just how rosy they can look. When the outlook darkens, we are prompted to imagine all the bad things that can happen. And then the initial impulse is perpetuated and enhanced; this doesn’t necessarily play out immediately.

  4. Climate risk in practice: Carbon tax?

    This summer, to picture the effects of a global carbon tax, we conducted an exercise, a stress test if you will, on the Pareto Aksje Norge portfolio. The conclusions were somewhat different from what you might expect.

  5. Building our boat in voyage

    Responsible, sustainable investment is a young field. Motives, perceptions, definitions and regulations are constantly changing. Just a few years ago, a lot was driven by idealism.

  6. Thin air, or solid rock?

    It’s been a year of surprises. And I know that some of you would like to put the strong stock market in the surprise bucket. After ten months of 2021, the S&P 500 has returned close to 25 per cent, on top of the arguably more surprising 18 per cent in 2020. Since the bottom in March 2020, total return is a cool 111 per cent. For the Norwegian benchmark index, the corresponding figure is 88 per cent.

  7. Banking on stupidity?

    It started well enough. About halfway through September, spreads on euro-denominated high-yield bonds had fallen by some 20 basis points and stock markets, while not buoyant, held up pretty well.

  8. Unusually average

    In the tug of war between economic recovery and fears of runaway inflation, August balanced out pretty well.

  9. It’s beginning to look a lot like … Goldilocks?

    What’s been moving the markets this month? If you’re expecting an itemised list of events, indicators and forecasts, I have a disappointment coming. You won’t get it here and I would claim you don’t need it.

  10. Predictions of little financial value

    June was a good month for both stocks and corporate bonds, extending the remarkable upturn since the height of the pandemic panic of last year.