After a year of turbulence: It pays off to be an optimist After a year of turbulence: It pays off to be an optimist After a year of turbulence: It pays off to be an optimist

After a year of turbulence: It pays off to be an optimist

Søren Otto Simonsen

Senior Investment Editor

Summary:  2021 was a turbulent year with ups and downs and several occasions where crisis was the media-theme. As an investor with a long-term strategy, it can be difficult to figure what to react on and what to ignore. Looking ahead to 2022, we have asked our Head of Equity Strategies, Peter Garnry, how he filters the news stream.

Inflation running wild, interest rate increases, Evergrande collapse, macropolitical standoffs, COVID-19, Brexit, cryptocurrencies, financial bubbles, climate change. These are just a few of the themes that in some way, shape or form have been portrayed as having the possibility to throw the financial markets into distress this year. Following the news stream closely, such news could inspire one to either buy or sell certain financial instruments. And if you are a trader who trades regularly, that could be okay – but if you like to invest once in a while, how should you then react? 

As we look towards a new year, which has all the ingredients for being as turbulent as 2021, we ask our Head of Equity Strategies, what to do with such news when you have a long-term investment strategy: 
“I've been with Saxo for 11 years. First, we had the Euro area crisis, then we had a crisis in the emerging markets, and then we had a dollar crisis, and after that we had a housing crisis in China. There's always something we can worry about, but, as I tell the young people here at Saxo, who wants to listen to me, it usually pays off to be an optimist, and if you work with finance, I think you have to be an optimist about the world and these things will solve themselves. So, if you stay true to being long-term in your investments and you remember to diversify your portfolio, then I think you’re off to a good start,” he says.

Looking at the past year, Garnry’s point about staying true to being long-term seems to have been a reasonable strategy. While the VIX index, which is a proxy for uncertainty in the financial markets, have seen some of the highest highs in the past five years, only topped by certain points last year, where COVID-19 was expected to cause havoc, the equity markets have continuously made historic highs – a trend which Garnry says may have been a new development.

“If anything, we've learned during this pandemic and with these supply chain disruptions, that the equity market has become extremely good at looking through trouble and focus on the long term. I think India is probably one of the best examples. Here we had a country that experienced an awful wave of COVID-19. But despite all those struggle, you had the Indian equity market powering ahead to new highs every month. That tells you a story about the fact that there are always risks - there's always concerns in the equity market. And I think the lesson in that story is that with a long-term strategy and a diversified portfolio, you shouldn’t overreact to these short-term bumps,” he says.


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (
- Full disclaimer (
- Full disclaimer (

Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region


Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.