Specialist: The situation on Tallinn bourse is a small problem

What’s happening on Tallinn bourse is a small problem considering current financial crisis, said Peeter Koppel, strategist of SEB private banking to ERR News.

“The situation on Tallinn bourse is clearly nervous, but these turnovers are small and quite speculating small investors are operating there,” noted Koppel.

“Our downturn started before that global one. Institutional investors have already left here and those, who are keeping large positions here, have bigger problems in the rest of the world. At current price levels it’s not possible to sell large pieces and the second is whether they want to sell at all,” explained Koppel.

Although time may seem good for buying stock, Koppel said that it’s not knows yet what will be the rules after the crisis.

“There is a problem with buying that markets are extremely scared. And although the markets seems to scream that stocks should be bought at this price level, we can’t forget global financial system is messed up and no one knows what will be new rules in the context where old rules are not valid anymore,” said Koppel.

He added:” In other words playing on a short-time recovery is like playing a lottery. At the same time I don’t find that long-term investment should be forgotten. It’d be useful to spring from philosophy of value investing – to take few risks and to take them in long time and hedged.”

Source http://balticbusinessnews.com/default2.aspx

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