SEB : SEB: Investment Outlook: Springtime for equities
SEB's assessment is that a new, sustainable phase has begun with regard to
upward-trending share prices. The market checklist for this is in the process
of being fulfilled: The economic outlook is gradually providing opportunities
for a positive direction, market valuations are reasonable and there is
increasingly good liquidity in the market. This is the main theme of SEB's
quarterly Investment Outlook report.
Given the prevailing very high risk premium on equities, there is a higher
than normal probability that equities will provide historically good returns
from their current price levels. Given the prevailing very low risk premium on
bonds, there is also a higher than normal probability that bonds will provide
historically poor returns from their current price levels.
"Yet it is important that investors focus not only on the 'old' industrialised
countries of the OECD, but also include the significantly faster-growing
emerging market (EM) sphere in their world view," says Hans Peterson, Chief
Investment Officer at SEB Private Banking.
Investment Outlook also ranks which geographic markets are the most attractive
to invest in. At this stage, Asia - with a focus on China - is the most
attractive as a primary growth investment. Less developed markets such as
Indonesia, Thailand and Malaysia may be of interest, along with Eastern
"Depending on what investors are aiming for - capital preservation or growth -
it is important to compose portfolios properly. We are increasing our exposure
to cyclical sectors such as industrials, commodities and consumer products. We
are also boosting the percentage of our holdings in the 'healthy' parts of
Europe such as Germany and the Nordic countries," Mr Peterson says.
Investment Outlook gives readers an in-depth look at the investment climate
and the prospects for seven asset classes. It also provides advice about
current risks and opportunities in the art of investing. The report can be
read in its entirety at http://newsroom.sebgroup.com/en.
For further information, please contact: Press contact:
Hans Peterson, Global Head of Investment Claes Eliasson, Press & PR, SEB
Strategy, +46 76 396 53 19
+46 8 763 69 21 email@example.com
Lars Gunnar Aspman, Global Head of Macro
Strategy, +46 8 763 69 75
SEB is a leading Nordic financial services group. As a relationship bank, SEB
in Sweden and the Baltic countries offers financial advice and a wide range of
other 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. On December 31, 2012, the Group's total assets amounted
to SEK2,453 billion while its assets under management totalled SEK1,328
billion. The Group has about 16,500 employees. Read more about SEB at
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Source: SEB via Thomson Reuters ONE
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