SEB: Investment Outlook: Strong economy and central banks in the spotlight again
(Thomson Reuters ONE) -
There are many bright spots in the world's financial markets, with broad-based
economic growth as the most important. We have also successfully navigated
through a number of political challenges, and quarterly corporate reports are
showing that both sales and earnings are rising in a way we have not experienced
for many years.
This has had a major impact on the global stock market, which has continued to
climb at an impressive pace. Overall, we remain optimistic about the
prerequisites for growth as well as inflation during the next couple of years -
a good background situation for risk assets.
"We are sticking to our positive view of economic growth and earnings trends
ahead. Nor do we regard the risk situation as troubling when it comes to factors
that have historically marked the end of lengthy economic expansions, for
example recession or unstable banking systems. Asset valuations are on the high
side from a historical perspective, but we believe they are still reasonable in
light of earnings growth and the continued low interest rate situation. Yet high
global indebtedness combined with record-low interest rates may lead to stock
market headwinds if interest rates climb at a later stage. On the whole, we now
favour an exposure that overweights both equities and corporate bonds," says
Fredrik Öberg, Chief Investment Officer, SEB Private Banking.
Central banks are gradually shifting their focus from stimulus to tightening
measures, but we have not yet reached the breakpoint where liquidity from
central banks ceases to stimulate the global economy. We believe that the
ongoing shift will lead to higher interest rates, but that this increase will be
constrained by the weakness of inflation pressure. In the foreign exchange
market, the US dollar depreciated significantly during the summer. This has
adversely affected returns for investors who have the Swedish krona as their
base currency.
The September 2017 issue of Investment Outlook includes two theme articles. The
first looks at efforts to achieve greater energy efficiency. At the 2015 United
Nations Climate Change Conference in Paris, 195 countries reached agreement to
reduce greenhouse gas (GHG) emissions in order to limit global warming and
declared that in a longer perspective, human activity should cause net zero GHG
emissions. This ambitious plan requires steps towards greater energy
efficiency. We examine the potential for progress in this crucial effort. The
second theme article examines the private direct loan market. To find good
potential returns, you need to take risks and in some cases be prepared to give
up liquidity by making investments with longer lock-in periods. If you are
willing to accept this, our assessment is that the private loan market can offer
good opportunities for attractive value generation.
The Investment Outlook report can be read in its entirety at www.sebgroup.com
For further information, please contact Press contact
Fredrik Öberg, Chief Investment Officer Frank Hojem, Group Press Officer
+46 8 763 63 04 +46 70 763 9947
fredrik.oberg(at)seb.se frank.hojem(at)seb.se
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SEB is a leading Nordic financial services group with a strong belief that
entrepreneurial minds and innovative companies are key in creating a better
world. SEB takes a long term perspective and supports its customers in good
times and bad. In Sweden and the Baltic countries, SEB offers financial
advice and a wide range of financial services. In Denmark, Finland, Norway and
Germany the bank's operations have a strong focus on corporate and investment
banking based on a full-service offering to corporate and institutional
clients. The international nature of SEB's business is reflected in its
presence in some 20 countries worldwide. At 30 June 2017, the Group's total
assets amounted to SEK 2,777 billion while its assets under management
totalled SEK 1,835 billion. The Group has around 15,000 employees. Read more
about SEB at www.sebgroup.com.
Press release (PDF):
http://hugin.info/1208/R/2133115/815577.pdf
Investment Outlook:
http://hugin.info/1208/R/2133115/815594.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: SEB via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 12.09.2017 - 08:00 Uhr
Sprache: Deutsch
News-ID 559517
Anzahl Zeichen: 5082
contact information:
Town:
STOCKHOLM
Kategorie:
Business News
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