“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, Private Banking, SEB.
As usual we also present theme articles on current topics. In this September 2021 issue of Investment Outlook, we take an in-depth look at the green transition: its status, ambitions and what investment opportunities may arise. Our second theme article examines long-term bond yields and answers the question “Where are yields headed?” The third theme article delves into digital education, which has played a vital role during the lockdowns resulting from the worldwide COVID-19 pandemic.
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.