Stockholm, February 4, 2020
Investment Outlook: If growth holds, stock markets will hold
The decade that just ended was dominated by good economic growth and rising share prices. We are starting 2020 and the new decade with modest annual global growth, around 3 per cent, and with share valuations at peak levels.
“This picture of decelerating growth and high valuations is perhaps frightening, but there are indications that equities may defy the law of gravity for another while. In addition, the lack of alternative sources of returns provides some support to stock markets. Few investors want to be left standing in the station as the equities train roars past,” says Johan Hagbarth, Investment Strategist, Private Banking.
Market upturns also increase the risk of setbacks, and the potential for continued share price increases is limited. Two of the three theme articles in this issue of Investment Outlook thus deal with areas where growth can be expected regardless of which way the economy moves. The first, part of sustainability efforts, is about future access to an increasingly scarce resource: clean water. We also explore two aspects of the digitisation megatrend − the potential of robotisation and the role of cybersecurity. Our third theme article concerns one of the most important political processes in modern Europe: Brexit.
Investment Outlook can be read in its entirety or as a 2-page summary at seb.se/investmentoutlookreport.
|For further information, please contact|
Johan Hagbarth, Investment Strategist
+46 70 513 69 58
Frank Hojem, Head of Corporate Communication
+46 8 763 9947
|SEB is a leading Nordic financial services group with a strong belief that entrepreneurial minds and innovative companies are key in creating a better world. SEB takes a long term perspective and supports its customers in good times and bad. In Sweden and the Baltic countries, SEB offers financial advice and a wide range of financial services. In Denmark, Finland, Norway, Germany and the United Kingdom, 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, 2019, the Group's total assets amounted to SEK 2,857 billion while its assets under management totalled SEK 2,041 billion. The Group has around 15,000 employees. Read more about SEB at https://www.sebgroup.com|