The bulk of the variation comes from what finance academics call “changes in discount rates,” which is a fancy way of saying the non-fundamental stuff that we don’t understand very well – and which can include changes in either investor sentiment or risk aversion, price movements due to forced selling by either levered investors or convexity hedgers, and a variety of other effects that fall under the broad heading of internal market dynamics.
This journey, from the rebirth of the country two decades ago, through rapid economic transition, and now into the heart of Europe, has always been followed keenly on the northern side of the Gulf of Finland. In my short introductory statement, I would like to offer some observations on that journey and some wishes for the future.