In the spring of 2020, the focus of financial market attention was on economic crisis and low valuations. Today it is on stimulus measures, vaccines and a bright future, but also much higher market valuations. Among positive factors, we are seeing forecasts of a high global growth rate and earnings increases, stimulative monetary and fiscal policies as well as relative valuations of asset classes. Among negative factors are high absolute valuation levels, the often already aggressive positioning of investors and high total debt.
“Last year’s sharp stock market recovery is reason for caution, but if economic growth forecasts prove correct while interest rates, bond yields and inflation are under control, there is continued upside potential for equities,” says Fredrik Öberg, Chief Investment Officer, SEB Private Banking.
This February 2021 issue of Investment Outlook includes two theme articles that examine the health tech sector and the new EU taxonomy, respectively. Health tech is a fascinating field that employs cutting-edge technological and digital methods to create effective and inexpensive health care solutions. The taxonomy is one of several European Union initiatives to help drive our transition to a more sustainable society.
Investment Outlook can be read in its entirety or as a two-page summary at seb.se/investmentoutlookreport, where you will also find our web video.