In economic terms, the recovery during the past year has been a success. The growth level and earnings trend are both clearly better than previously feared. This has served as rocket fuel for stock exchanges and credit markets, which have shown one of their strongest 12-month periods in history.
“At present, the economic outlook is good, but it is important to have a good idea of potential risks. An environment of high valuations and risk appetite decreases upside potential and increases possible risks. However, overall pricing is still acceptable if economic forecasts prove correct and provided that inflation and bond yields do not skyrocket,” says Fredrik Öberg, Chief Investment Officer, SEB Private Banking.
This May 2021 issue of Investment Outlook also includes an in-depth look at the healthcare sector, which has been in the public spotlight throughout the pandemic but has not received that much attention in stock markets, since investors have focused on the choice between growth stocks and cyclical, low-valued stocks. Our second theme article examines the gaming sector – a fast-growing industry in which a number of Nordic companies have established successful operations.
Investment Outlook can be read in its entirety or as a two-page summary at seb.se/investmentoutlookreport