Share and fund savers may have seen values fluctuate quite a bit recently. news has spoken to two people who may have an explanation for that. The big technology giants on Wall Street have suffered recently, and on Thursday it was possible to track all the major indices in the US. The mood soured further in the opening hours on Wall Street on Friday afternoon. There was also a marked decline in the Asian market in the morning hours on Friday, when the stock exchange in Japan had one of the biggest one-day falls in history, according to the Financial Times. Oslo Børs also took a beating on Friday, with a fall of 2.94 per cent. It is the worst stock market day since March 2023. As usual, there are many factors that together make up the reasons for major changes in the market. Here are some quick explanations of what is making the market nervous now: Is the American economy turning around? It is often a matter of time how long an economy tolerates a relatively high interest rate, before it starts to deteriorate. In the last 24 hours, two numbers have shown signs of a slowdown in the US, and many are now wondering whether the US central bank has waited too long to cut interest rates – and whether a recession is in store. Tek company: It has been an insanely good year so far for several of the technology companies investing in artificial intelligence (AI), in the hope that this investment will now pay off. But now there are several who point out that this may take longer than previously expected. And maybe KI is not as insanely big a revolution as many had thought, asks portfolio manager Sunniva Bratt Slette at Storebrand. – Many people have suffered from altitude sickness and want to withdraw their winnings now. Unrest: The stock market is usually allergic to general unrest. Now investors are closely following the situation between Israel, Hezbollah and Iran. A big joker is also the presidential election in the USA. Surprising interest rate hike: The Japanese market was surprised on Wednesday by an unexpected interest rate hike from the Japanese central bank, which contributed to nervousness there. Slowdown in the US economy An important indicator of industrial activity in the US fell in July to the lowest level in eight months, figures showed on Thursday. It was far lower than expected, explains portfolio manager Melanie Brooks. SENSITIVE: Portfolio manager Melanie Brooks at Fondsfinans Kapitalforvaltning says investors are very sensitive now, and that there is a lot of psychology involved. Photo: Fondsfinans Kapitalforvaltning – This is the real economy, and now there are concrete signs of slowing down. The purchasing managers in the industrial companies report lower demand, says Brooks. On Friday afternoon, there were also figures for how many jobs were created outside agriculture in the US in July. It is an important temperature gauge: if many jobs are created, the American economy is doing well. In several months, more jobs have been created than expected, but in July fewer were created. The question many are now asking is whether the US central bank (Federal Reserve) is waiting too long to cut interest rates. This week they announced once again that the interest rate will remain at rest in the range of 5.25-5.50 per cent. It has been there for more than a year. An interest rate cut will be able to speed up the economy again, but the next chance will be in September. – What we see now is a rotation. When there is unrest, investors want to profit from companies that have done well, so they pull out of these shares and look for safer havens, says Brooks. The safe havens can be gold or bonds, according to the two portfolio managers. Change in technology stocks – Technology companies have been hit the hardest lately, because many of them have done so well so far this year. Things that have gone best are usually the ones that get the fastest correction, says Brooks. Brooks wonders if there might now be a change. Should the US central bank cut interest rates several times over the autumn, there are several growth companies that could once again experience an upswing. – Many of the smaller growth companies have suffered from high interest rates. So it may be time to look at several of the technology and renewables companies that have not done so well – because perhaps they can benefit from a lower interest rate in the long term, says Brooks. What should Norwegian savers do? – The best thing is to take it with crushing calm. If you save in a mutual fund, you should sit for three to five years. Significantly longer than a few months of unrest, says Slette in Storebrand. But if you can’t sleep at night, you should perhaps position yourself a little differently, she believes. QUIET IN THE BOAT: Sunniva Bratt Slette, portfolio manager at Storebrand, believes you should have a long-term horizon if you save in mutual funds. Photo: Storebrand – You mustn’t put all your eggs in one basket, says Slette. Slette herself has no intention of making a big deal in the portfolio she manages in Storebrand. Her team includes the AI giant Nvidia. – I am very satisfied with sitting still in the boat and not making strong rotations, when there are no underlying reasons why one should do so, says Slette. Published 02.08.2024, at 16.54 Updated 02.08.2024, at 16.56
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– Many have suffered from altitude sickness and want to take advantage – news Norway – Overview of news from different parts of the country
