Chief Investment Officer Ari Huotari at municipalities’ pension insurer KEVA stirred a big debate after telling YLE news that the stock market and other risky assets are creating a bubble and KEVA has reacted by selling some of its holdings. Huotari said he would not be surprised to see up to a 20-30% drop within the next 12-18 months.
Other pension insurers did not seem to agree, feeling that the quick advance is justified in the current low-interest rate environment. Former high-profile politician Raimo Ilaskivi, who is also a Doctor's degree holder in economics, utilized the old adage that this time it is different at his blog published by online newspaper Uusi Suomi.
Ilaskivi mentioned the effectively negative interest rate and European CEntral Bank operations as support for the stock market. He viewed comments from Huotari to constitute investment advice and felt that it is outside the domain of a pension insurer. Ilaskivi hinted that such an advice is potentially a big market mover in Finland and foresees discussion on the responsibilities of large investors in communications toward retail investors that can be swayed by such remarks.
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