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Alternative Market Briefing

SEB: stock market will climb despite weak economic conditions, Nordic region and China promising

Monday, July 13, 2009

From Komfie Manalo, Opalesque Asia:

Hans Peterson, global head of investment strategy at SEB, the fund management arm of Swedish banking group, said he believed the stock markets could climb despite weak economic conditions – at least for a while – in the June edition of ‘SEB's Investment Outlook - Market view and portfolio strategy.’

Peterson said that last month had witnessed a recovery in global stock markets - from extreme levels of fear to a more normal state. Behind this recovery are a number of factors that will continue to operate in the near future and will thus probably continue to buoy stock exchanges.

Greater interest in the stock market Powerful monetary stimulus policies are leading to very low interest rates. This means that the alternatives to equities in terms of returns/yields are few. Peterson cited most observers believed that risk had diminished in financial markets - a pattern that may very well persist over the next few months.

In light of the very large economic policy stimulus measures, there is reason to believe that the stock markets ahead will be relatively stable.

Global overview

The U.S. The American equities market has benefited from the positive cyclical signals that have appeared in recent months. This is largely a consequence of the unprecedented federal stimulus measures that have been enacted, both as part of monetary and fiscal poli......................

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