Outlooks

Region:

Europe

Edition:

Selector

We have continued with our soft landing and pro-risk scenario, which we have applied since inflation peaked in late 2022. This means being overweight in stocks with a focus on the US, and growth stocks, supplemented by our home market of Swedish stocks which have a more value and cyclical character. In fixed income portfolios, we have applied a dynamic strategy regarding duration and credit ratio. At the moment, we have a neutral duration and are overweight in corporate bonds, while the asset class is underweighted.

We are overweight in global equities and the US, and underweight in defensive sectors. In bonds, we are overweight against investment grade and neutral against high yield as well neutral duration as a safety position in case the high-risk appetite in the market is disturbed. In liquid alternative positions, we prefer macro hedge funds. In illiquid and private assets, we focus on high-quality managers and spread the risk between different types of strategies.