(B) Blitz interview Investor.bg

What is the reason behind today’s market decline? Is the turnover level a panic signal? What should we expect within the next days and when will the things get back on track?

Today’s market decline is definitely influenced by the bad news on the global markets. The investors exited all the world markets including the Bulgarian one. However, the companies that have credibility on the market still enjoy stable price levels. The abnormal things on the BSE have actually happened in 2007. In my opinion, it is now, that the things are turning normal. The price multiples are entering non-euphoric boundaries and in my opinion are attracting long-term value investors. Much to the rational investors regret, the markets overreact during ups and downs. I believe that the mutual funds’ redemptions and some forced reverse REPOs could bring the market irrationally further down.

What could we expect in the third quarter reports, the oil has declined significantly? Would the reports play any role on the market this year?

The first strong reports would be due earliest 09Q2, whereas in the meantime we might enjoy anecdotal positive results in specific sectors and companies. Unfortunately, the focus of the mass investor will remain blurred during the crisis and will not read the first positive signals – this is the inevitable overreaction of the human mind in critical moments.