SEB: Investment Outlook: As autumn closes in, financial markets hope for
We are in a stock market-friendly phase, but the pace of the equity market
upturn varies in different parts of the world. Weaker economic activity in
emerging markets has become a new element in the calculation, but the main
trend will be driven by stronger demand, with equities remaining the most
important source of returns, according to SEB's quarterly investor report,
A maturing economic cycle will drive cyclical assets. The defensive trend that
has dominated stock markets will come to an end. Sectors and regions
characterised by more cyclical sensitivity will be in the spotlight.
"Europe will contribute to future returns. The European economic recovery is
under way, leaving the frecessionary phase behind. This will contribute
positively to perceptions of Europe as an investment. There are significant
growth opportunities, with potential for higher earnings," says Ann Grevelius,
Global Head of Investment Strategy at SEB.
In this issue of Investment Outlook, we thus look more closely at Europe, a
region with genuine potential to be a good investment this autumn. The
European Central Bank still emphasises that the euro zone economy needs
support, but all indications are that the recession there has ended.
We have also written about Japan, a somewhat forgotten giant, which in our
view needs to be re-examined for various reasons. Prime Minister Shinzo Abe is
laying a new economic foundation, "Abenomics". What potential is there for
Japan to regain momentum, and what will this do for the world's financial
Emerging markets are cheap in terms of valuations. Uncertainty associated with
the economic slowdown in EM countries has created extremely large pricing
differentials. Today the gap in price-earnings ratios between EM and other
countries is the widest for many years, creating investment opportunities.
"We are in a special phase in equty markets, in the sense that bond yields
will be on their way up for a rather long time. This implies that bonds, a
natural component of investment portfolios, risk generating negative returns.
As a result, we must be careful about maturities and look at other ways to
diversify our portfolios," says Hans Peterson, Global Head of Asset Allocation
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://www.sebgroup.com/en.
For further information, please contact: Press contact:
Hans Peterson, Global Head of Asset Claes Eliasson, Press & PR, SEB
Allocation at SEB, +46 76 396 53 19
SEB Investment Management, +46 8 763 69 email@example.com
Ann Grevelius, Global Head of Investment
SEB Private Banking, +46 8 763 63 04
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 June 30, 2013, the Group's total assets amounted to
SEK2,596 billion while its assets under management totalled SEK1,387
billion. The Group has about 16,000 employees. Read more about SEB at
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Source: SEB via Thomson Reuters ONE
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