VER's blog
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2023-05-16 at 11:13 Timo Löyttyniemi
Interest rates are now at normal levels and this makes for a new investment environment. If there is one good thing to come out of inflation, it is the normalisation of interest rates. The changes are considerable. The leap in the interest...
2023-03-29 at 11:35 Timo Löyttyniemi
A crisis needs a fitting name. The financial markets are struggling with problems that make it necessary for governments and central banks to step in. The current situation meets the criteria for financial instability. We should find a descriptive...
2023-03-29 at 11:07
In recent weeks, we have received news of crises threatening a number of banks. People wonder if this means a new banking crisis or if it is just a crisis affecting a few banks. After all, there is a big difference between the two. Is there cause...
2023-03-03 at 7:40 Timo Löyttyniemi
Governments are increasingly trying to outdo other countries by pursuing an active industrial policy. It appears that faith in the power of industrial policy is making a comeback. The doctrines of a pure, free market economy and free trade take a...
2023-02-02 at 15:41 Timo Löyttyniemi
The US stock markets have long been a favourite of investors who have been attracted by hefty returns. Another factor boosting investor interest has been the strengthening US dollar. But something new is happening right now. In recent weeks, there...
2022-12-15 at 16:36 Timo Löyttyniemi
The past few years have been marked by a series of unexpected crises. Covid-19 set in quickly without warning, shaking up economies and business as usual in 2020 and translating the risk of a pandemic into reality. Just when we were recovering...
2022-11-02 at 11:49 Timo Löyttyniemi
Europe and the European civilisation have long traditions that have been refined over time. The European tradition and ideals include democracy, the rule of law, freedom of the individual and information, the market economy, and a limited role for...
2022-10-12 at 11:35 Timo Löyttyniemi
The electricity market made painful waves in August 2022. The price of electricity rose to record levels and the availability of electricity became uncertain. Many believe that we are heading for a cold winter, not just outdoors but also indoors....
2022-10-07 at 12:13 pension liabilities, pension system, funding ratio, interest rate, central bank
All looked well in the United Kingdom. The pension system had been underfunded for a long time and now, as interest rates spiked upwards in early 2022, the funding ratio of the system increased to exceed 125%, despite the fact that the market...
2022-08-30 at 11:40 Timo Löyttyniemi
A lot of things have changed as a result of Russia’s war of aggression. Energy is in short supply and its price has risen sky-high, all in addition to the destruction caused by the war. Moreover, increasing oil and gas prices have pushed inflation...
2022-07-01 at 11:59 Timo Löyttyniemi
People in the United States love big words. The financial crisis was known as the ‘Great Recession.’ In the same vein, the long and relatively positive period preceding the financial crisis is called the ‘Great Moderation’. And of course, there...
2022-06-03 at 14:56 Timo Löyttyniemi
Geopolitics has taken centre stage. Geopolitics refers to the exercise of political influence and economic power. As we have seen, it may, at times, mean the exercise of power through the threat of war or even outright war. The Russian war of...
2022-05-20 at 11:50 Timo Löyttyniemi
The world economy and financial markets are in a state of amazement. Just as we in the West are leaving Covid-19 constraints behind, we are exposed to pressures from three different economies and three strict policies. These pressures are felt in...
2022-03-31 at 12:16 Timo Löyttyniemi
Europe does not need war; we are simply too civilized to fight. It turns out that the situation in Europe was not as good as we wanted to believe. Now the war has been here. At the beginning of February, I myself did not expect a war to break out....
2022-01-26 at 12:55 Timo Löyttyniemi
The Covid crisis has persisted despite vaccines and people’s efforts. The new Omicron variant upset all plans for a gradual return to normality. A reversal was inevitable and return to normalcy was replaced by further distancing. A number of...
2021-12-17 at 11:01 Timo Löyttyniemi
A year is a short time. Exactly one year ago, when I was looking ahead to 2021, it did not occur to me that we could be facing the same challenges again in a year's time. Very little has changed over the past 12 months. Equity valuations remain...
2021-12-01 at 16:32 Timo Löyttyniemi
Investors play an important role in combatting climate change. However, this role is often not what it is widely believed to be. Fact is that investors do not normally produce or manufacture anything. Even so, investors wield influence in several...
2021-10-08 at 9:37 Timo Löyttyniemi
Money is not a concept that you need to give much thought to. It just is. But if you start thinking about it at any length, your faith in it may flounder. After all, money is based on confidence. However, money is currently undergoing a digital...
2021-09-08 at 16:05 Timo Löyttyniemi
Phenomena stemming from climate change are attracting widespread attention. Last summer events such as floods in Central Europe and forest and bush fires across the world made it clear that insurance policies fail to cover all loss and damage....
2021-06-11 at 10:18 Timo Löyttyniemi
Index investing is often misunderstood. People say it’s easy. You just pick an index fund to invest in. Right, but before reaching this point you need to make a number of choices. Fact is that index investing is a much broader concept than people...