The war in Iran, which has resulted in a global energy crisis, has caused world markets to tremble again. Recent weeks have been characterized mainly by losses and red numbers.
We are now in a situation where much of the pricing and the economic effects we see are due to expectations of a continued conflict and thus long-term consequences for the economy, says Shoka Åhrman, savings economist at SPP Pension and Insurance.
Diversify investments
Predicting future stock market developments is almost impossible in a time of great fluctuations. As a saver, trying to “time” the market – to buy and sell at the right time – is at least as difficult.
According to Åhrman, it is important not to act in panic. At the same time, one should be aware of the risks that exist.
We've always said that you should continue to save monthly. But if you're very worried, maybe you shouldn't continue to save to the same extent in the stock market. Maybe you should lower your risk there.
Diversify your investments and review the risks in your savings. And as always, it's important to think long-term.
For example, when it comes to pension capital.
According to Åhrman, the strategy also depends on the type of savings you have and when the money will be used.
The recommendation to sit still in the boat is not right for all savers.
Can turn quickly
She also points out that the stock market operates at a significantly higher pace than the economy as a whole.
If we receive positive news or indications that this is temporary, then the market could turn around relatively quickly.
The fact that the market swings back and forth is something Swedish savers need to deal with.
I don't think we will be free from this type of market reaction in the future, she says.
What do you think?