"The problematic start to this year has created large-scale risk aversion, clearly moderating and in some cases dramatically reducing the prices of financial assets. General risk-taking among investors is now well below what it was at year-end 2021. Investors have partly adapted to the deteriorating conditions now prevailing, but whether or not this is enough will largely be dependent on whether or not the prevailing negative forces culminate soon. Signals that inflation has peaked would be very welcome. This would reduce pressure on the fixed income market and central banks," says Fredrik Öberg, Chief Investment Officer, SEB Private Banking.
This issue of Investment Outlook also includes two theme articles. The first is about the ongoing energy transition, among other things highlighting how the war in Ukraine is affecting the transition process and what needs to happen to speed it up. The second examines the problem of cybercrime and the role of cybersecurity (or digital security) in countering and preventing it. This is a sector with strong underlying growth and low dependence on economic cycles.
Investment Outlook can be read in its entirety or as a two-page summary at seb.se/investmentoutlookreport, where you will also find a web video.
Investment Outlook: More muted forecasts
High inflation, central banks that must quickly raise key interest rates, COVID-19 lockdowns in China, the war in Ukraine and much lower economic growth expectations have plagued financial markets in 2022. Risk appetite has declined as problems have mounted. We expect to see a stabilisation soon, but the risk situation remains troublesome.