The capital market is adapting to new conditions as we move from the dramatic recovery phase to more normal growth and inflation rates. We expect fiscal and monetary policy to move in the same direction, with stimulus measures slowly being dismantled. This will decrease market potential, but we still consider it positive.
"We can be happy that the corporate sector has engineered a phenomenal earnings recovery, which is the main reason why stock market returns have been so strong. Such positive factors as a high global economic growth rate and continued corporate earnings increases are being offset by high absolute valuation levels, investors' aggressive positioning and high total debt. Our assessment is that the capital market is preparing itelf for the normalisation phase. In this environment, we have chosen to reduce risk somewhat in our model portfolios," says Fredrik Öberg, Chief Investment Officer, SEB Private Banking.
As usual we also present theme articles on current topics. In this
Investment Outlook can be read in its entirety or as a two-page summary at www.seb.se/investmentoutlookreport, where you will also find a web video.
For further information, contact:
Fredrik Öberg, CIO
+46 70 767 6179
fredrik.oberg@seb.se
Press contact:
+46 70 763 8243
niklas.x.magnusson@seb.se
SEB is a leading northern European financial services group with a strong belief that entrepreneurial minds and innovative companies are key in creating a better world. We take a long-term perspective and support our customers in good times and bad. In
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