Paragraphs
What do we use cookies for?
We use cookies on our website, and we divide them into two categories. Essential cookies are mandatory for the website functioning – they are automatically placed on your device when you visit the website. To provide you with the best possible browsing experience, as well as personalised information about our services, we also use non-essential, i.e., Statistical, Functionality, and Marketing cookies. If you do not agree with the non-essential cookies being used, please select “Accept only essential cookies”.
To learn more, see our Cookie Policy.
To review and / or update your cookie preferences, please refer to cookie settings.
In addition to Essential cookies which are mandatory for the website functioning, we also use Statistical, Functionality, and Marketing cookies which make it easier for users to browse the webpage, as well as for help us understand the ways in which the website is used.
Cookie is a small text file that consists of letters and numbers, which is saved on your device by the website you visit. It acts as technical support, and facilitates your usage of the website in different ways. Cookies used on our website are placed by SEB, as well as the third parties, and are saved in different ways, depending on the type of the cookie. You can manage your cookie settings below. For more information, please refer to our Cookie Policy.
There is a feature in the financial markets that has not changed for decades now: downturns are always followed by upturns, but upturns are followed by downturns. Larger or smaller falls have also been experienced several times in the very recent past: in 2015, 2018 and 2020. They are experienced both by SEB and funds offered by Latvian financial market participants. This is a natural feature of the financial market, which is affected by a wide range of developments – from central bank policy, inflation, and national growth rates up to the performance of various companies.
This trend continues even today. The year 2021 was very successful – after a fall in March 2020 caused by the spread of Covid-19, we experienced a rapid increase in value for almost two years. The year 2021 was also a successful year for SEB investment funds. The year 2022 was a year of significant change and, unfortunately, this change was not always positive, with an impact on the economy and financial markets as a whole, as well as on each of us individually. The year 2022 started with a fall in financial markets, as investors switched from technology companies to other sectors, and continued with Russia’s invasion of Ukraine. In parallel, central banks changed their policies significantly, raising base interest rates. Also, Covid-19, especially in Asia, significantly affected and continues to affect the world economy. As a result, almost the entire year of 2022, with the exception of March, July, October and November, was negative. This affects the results of the financial markets and also investment funds in the short term.
No one can avoid short-term declines, but it should be taken into account that stopping contributions or terminating the contract at the time of a market decline can result in permanent losses, because then the savings are denied the opportunity to recover. It is also important to remember another important factor in building up savings – the long term. Most often, savings are built up over several years, even decades, so the impact of short-term fluctuations is not always as significant as it seems at the time we experience it. As the performance of the funds should be assessed over the long term, it is advisable to stick to the investment strategy chosen and only switch funds after careful consideration.
Your SEB Life and Pension Baltic SE
10.02.2023.