The world’s stock exchanges have fallen substantially the last days. One of the affected markets was the Oslo stock exchange that dropped 5.8 per cent on the 16th of September.

What is it that influence the markets in the short run?

- Right now there’s a fear in the market and it controls the development. In short-terms it’s the Lehman bankruptcy and the insecurity about what will happen with the other investment banks that affects the market the most. Unsettled sub prime loan crises in USA and fear of recession in the western economies are trigger factors. The Oslo stock exchange has been struck extra hard as of lately – apart from the above mentioned factors, the substantial price fall on oil has had a substantial affect.

Can you mention some isolated factors that can indicate in a more positive direction?

There are several factors that can show a more positive direction. Firstly, no one denies the real circumstances any longer. Every one agrees that the worlds markets have major problems and that the economies are out of balance. Said in a tabloid manner: When the last optimist has become a pessimist, then the next one will be the one who changes the view and will do it in a positive direction. Secondly we see that the worry about the inflation that has influenced the market the latest months is disappearing thanks to the drop of raw materials. The purchase- and company mergers amongst the companies have also increased. Finally we can see a stronger dollar end economical indications in the USA are getting a bit more stable. This can be an early sign that the recession in the USA has reached its bottom.

What are ODINs portfolio managers doing when the storm is raging?

Unfortunately we cannot stop or influence the share swings on the worlds markets. We are trying as much as possible to distance ourselves from the short-termed price development and instead concentrate on analyzing and follow up our shareholdings in the funds. At the same time we’re still looking after new potential investments and not at the least we are aiming to manage the shareholders savings in the best possible way in the long run.

Is it when everything looks bad that actually the time to buy shares?

We have seen market situations like this one before and we know that the periods of decline are temporary – even if it’s very unpleasant when it’s blowing of its worst. No one knows exactly when this will end but we think we are getting closer to the bottom. If you are going to do something with your savings now, we think you should go against the flood and increase the savings, rather then decrease them. We believe that the shares that you buy today will be looked upon as very cheap in the near future.