Highlights from the latest SEB House View
The committee decided to keep the risk utilisation at 50 per cent.
- We expect weaker US growth and higher inflation, and are not chasing the current rally.
- We are more constructive on EM equities and favour European banks and small caps.
- We remain bearish on the USD, though a shortterm rebound is possible given extreme speculative positioning.
- Fed rate cut expectations appear optimistic, partly driven by speculation around the 2026 Fed Chair appointment.
- In the long term, loose fiscal policy, defensive spending, flexible inflation targeting, and a generally higher nominal environment support a constructive outlook for equities.