In Swedenbank’s April strategy, published on the investment website Aktiell, Swedbank’s and Sparbanken, Matthias Isaacson says that risk appetite among investors continues and that many stock markets frequently set new highs while vaccines continue.
He also says that there are expectations of a strong recovery in the economies and that there is support for us in the face of gradual normalization. For these reasons, Swedbank believes that economic activities will increase sharply this year, and therefore profit growth will be historically high in the coming year.
There is a risk of sticking to the wheel
Any austerity measures in monetary policy could throw a stick in the wheel, even if Matthias Isaacson doesn’t consider the risk to be particularly high at the moment.
“The message, not the least from the US Federal Reserve, has not changed; actual improvements in recovery must be achieved before the stimulus cut is on the agenda,” he said.
Nevertheless, the rise in long-term interest rates has caused some anxiety in financial markets, despite the Federal Reserve’s announcement that temporary hikes in inflation are not scary.
The prevailing environment for equities is a bit unique and at the moment we see nothing that fundamentally challenges our optimistic view of the stocks in the asset class, thus we maintain the clear dominance, says Matthias Isaacson, who believes that now after several sharp rallies it is time to look at the portfolio so that it does not become Exposure to capital is very large.
Take the negative news calmly.
Matthias Isaacson thinks the market continues to be optimistic, not least the Stockholm Stock Exchange.
We are testing that stock markets are quietly taking the negative news about the epidemic and in terms of investing now out of the epidemic, he says to Actel.
There is, of course, a “negative balance”, and that is where the year begins. If the initial reporting period now shows any weaknesses, it will create some question marks among investors.
They can be risk aversion triggers, but for now we consider these types of problems to be temporary in nature. We maintain the clear share dominance, but we are making some adjustments when it comes to regions, says Matthias Isaacson.
Warns of the reporting period
In terms of allocation, Swedenbank maintains the majority for Sweden, but warns of the upcoming reporting period. Matthias Isaacson says the strong development in the markets has limited the scale of disappointment.
In light of the “declining momentum” in the market in China, Swedbank chose to neutralize the excess weight of emerging markets. “Rising regulatory enthusiasm, higher producer prices, signs of declining macroeconomic stimulus, and uncertainty about dialogue with the US, risks at least in the short term dampening flows to Chinese equities,” are the reasons given.
Instead, the corresponding wallet weight has been transferred to Japan, which is also a periodically very sensitive area.
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