27 Nov 2012 10:00

SEB: Investment Outlook: Equities regaining their role in financial markets

Among problem-filled political processes, the economic recovery has been pushed into the background. Recession risks are down sharply, and there is a growing likelihood of better times ahead. This is the main theme of SEB's quarterly Investment Outlook report.

For a long time, market players have had a sceptical attitude towards risk investments, based on the problems that have existed and still exist around the world. Capital has flowed out of the stock market and into the bond market. Conditions are now about to change, SEB believes:

"Putting money into stock markets will make more and more sense if there is a greater focus on the recovery. The road to recovery will still be lined by financial risks. Yet opportunities exist, and returns will be generated in places other than traditional industrialised countries," says Hans Peterson, Chief Investment Officer at SEB Private Banking.

Today new value is being generated in countries outside the usual field of vision of Swedish investors. In order to navigate properly through unfamiliar geographic areas, SEB has developed a method for locating and filtering where the opportunities are best. Investment Outlook presents this quantitative Country Model for the first time. It is based on stock markets, not on the macro-economy.

"The model is one element - a quantitative one - that we use as a tool in our management of global equities, but we have of course supplemented it with qualitative analyses as well," Mr Peterson says.

Looking at the Country Model, three countries stand out as the most attractive: Norway, Indonesia and Turkey. Sweden ends up only in 17th place on the list.

"For those who dare to take risks in global stock markets, this model may provide exciting inspiration, especially at a time when capital is shifting from defensive to aggressive positions," 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:
Hans Peterson, Global Head of Investment Strategy,
SEB Private Banking, +46 8 763 69 21
Lars Gunnar Aspman, Global Head of Macro Strategy,
SEB Private Banking, +46 8 763 69 75
Press contact:
Claes Eliasson, Press & PR, SEB
+46 76 396 53 19
claes.eliasson@seb.se
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 September 30, 2012, the Group's total assets amounted to SEK 2,402 billion while its assets under management totalled SEK 1,271 billion. The Group has about 17,000 employees. Read more about SEB at www.sebgroup.com.