SEB: Investment Outlook: Positive – but keep an eye on the risks

Global growth is accelerating and broadening, which is also the strength of the bolagsrapporterna shows – both in terms of sales and profits. It provides good conditions for the stock market.

The global stock market has risen impressively at the same time as the volatility has been very low. In the fixed income market sees the interest rates seem to have bottomed, at the same time as the difference between the interest on government bonds and företagsobligationsräntan remains small. We remain with our positive view on global growth and profitability in the future.

– Rays of hope on the world financial markets, political risks have declined, the growth rate improved in several regions, and the reports for the first quarter gives hope for the future then we got to see profit growth we have not experienced in many years, ” says Fredrik Öberg, Chief Investment Officer, SEB Private Banking.

However, the optimism is attenuated when the valuation is for the higher direction, and that the investor community has fairly much riskier investments in their portfolios. Around the corner, expect interest rate hikes from the u.s. central bank and the latter should progressively more central banks to follow suit. It is also possible that the same central banks then begin to shrink their balance sheet by not reinvesting all the bondholders as they fall due. Thus, we would get a mechanism that raises the interest rate in the system and at the same time the brakes liquidity. This process will happen gradually and carefully, then all is aware of the potential for negative effects in a financial system with high levels of indebtedness.

The report contains this time two themes: The first focuses on emerging markets, the Emerging Markets, the past year has made a strong return. We describe the conditions when the situation has now improved. The second relates to digital shifts and changing consumption behaviours, where a growing proportion of the earth’s population believes that trade via a computer or a phone is the smartest and most comfortable option, which gives the great impression in the corporate sector.

The report is available to read in its entirety at:

SEB is a leading nordic financial services group. We strongly believe that entrepreneurial thinking and innovative businesses needed to create a better world, and with a long-term perspective, we support our customers in both prosperity and adversity. In Sweden and in the baltic countries, we offer a wide range of financial services and advice. In Denmark, Finland, Norway and Germany, we are focused on företagsaffären and investment banking based on a full-service oering to corporate and institutional customers. Our international character is reflected in some 20 offices worldwide, with approximately 15 000 employees. The 31 march 2017, the group’s assets amounted to 2 927 billion and assets under management sek 1 800 billion. Read more about SEB at

Press release (PDF)

Investment Outlook

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