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SEB expects broader earnings growth in 2026

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SEB forecasts another strong year for equities in 2026, supported by stable global growth and continued policy stimulus. At the same time, the bank warns of high valuations and bubble risks in some sectors.

In its latest investment report, Investment Outlook, SEB’s experts predict that next year’s earnings growth will be spread across more regions and sectors than in recent years. This could reduce the heavy reliance on large US growth companies that have dominated markets.

The bank maintains a slight overweight in equities with a focus on global exposure, but has scaled back its previous strong tilt towards US technology stocks. Healthcare remains an exception among otherwise underweighted defensive sectors.

On the fixed income side, SEB adopts a cautious approach with an underweight in high-yield corporate bonds and slightly longer maturities to help absorb market volatility. Several portfolios are complemented by hedge funds, which act as an alternative to traditional equities and bonds.

The report notes that global growth has remained resilient despite trade tensions and higher tariffs. Monetary and fiscal policies continue to stimulate economies, but also contribute to rising debt levels. Companies have shown strong adaptability and delivered better-than-expected profits.

Investors remain focused on structural trends in artificial intelligence, which drive growth but require significant investment. This creates a complex risk environment where high valuations demand continued strong performance in 2026.

Read more and download full report (seb.se)

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