The Swedish krona has become less weak lately

Today our holding reached ATH calculated in USD while the actual value for us, which is the portfolio value converted to SEK, decreased. The reason for this is that the Swedish krona continues to gain ground against both the euro and the USD. For every penny that the dollar falls in value compared to the krona, exactly all of our holdings are negatively affected, in terms of value.

A good outcome of a stronger krona is that we get more for every krona. A bad outcome will be that our actual dividends will be lower compared to the months when the Swedish krona was weaker compared to today's exchange rate.

Opinions differ widely when it comes to the value of the Swedish krona. There are those who believe that the Swedish krona is undervalued, even one of the world's most undervalued currencies, while there are those who believe that the Swedish krona will lose more against the dollar and the euro.

The Swedish krona, which is a small currency, is much more influenced by the outside world than, for example, both the euro and the krona. In addition to external factors, declining domestic risks and positive external developments are very significant for the smaller currencies. Sweden has major problems with gang crime, which we currently "export" to Norway, Denmark, Finland, Spain and even Iceland.

Our current government has a massive job that will take 5-10 years to clean up after the last government who was far too lenient on crime. If they succeed in reversing the negative trend, it will strengthen the Swedish krona.