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.
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. At 31 December 2020, the Group's total assets amounted to SEK 3,040bn while its assets under management totalled SEK 2,106bn. The Group has around 15,500 employees Read more about SEB at https://www.sebgroup.com