Surprised?
You shouldn't be. At every single point in time, there is a host of factors that might just burst what someone inevitably labels a market bubble. Most often, nothing of the sort happens.
And then we forget. If indeed worries are like interest paid in advance on a debt that never comes due, who keeps remembering past debt that failed to materialise?
Here's instead a piece of fun fact to cheer you up: Did you know that the coming month has been one of the best months in the stock market? In the Nordics, based on MSCI indices starting in 1970, July has delivered twice the average return of the other months of the year. Here, the Swedish market is at the top of the list. How about an annualised return of almost 37 per cent? Perhaps the long summer days and a bit of holiday recharging keep working wonders on the market sentiment.
Perhaps.
Now, as you probably know by now, I don't generally recommend timing your investment. So, while it might be tempting to use the splendid July figures as an enticement to invest, I won't.
Instead, here's a bit of statistics you can chew on while enjoying your hammock or beach mattress: If you invested your savings in the Nordic stock market at the beginning of July and remained invested for exactly five years, you would have had an average excess return – compared to a similar investment made at the beginning of August – of approximately ...
On second thought, I'll let you figure it out yourself.
Have a wonderful summer!
Finn Øystein Bergh
Chief Economist & Strategist
Historical returns are no guarantee for future returns. Future returns will depend, inter alia, on, market developments, the portfolio manager’s skill, the fund’s risk profile, as well as fees for subscription, management and redemption. Returns may become negative as a result of negative price developments. This is marketing communication.