Central banks cannot tighten monetary conditions too much because of the sheer amount of debt in the world. If we assume that the average maturity of debt was five years, we would have to refinance over 60,000 billion of debt each year. This is equivalent to about 70% of total annual global GDP.
The much-maligned Helsinki Stock Exchange (also playfully known as Hesuli in Finland) has hoisted itself back above the mythical 10,000-point mark. While stock markets in other parts of the world generally bottomed out in the fall of 2022, HEX continued to find new lows as late as last fall. An upturn in the European and global economies and the easing of corporate headwinds should, however, pave the way for Nasdaq Helsinki to rebound.
Riksbanken blev den första bland centralbankskollegerna att sänka styrräntan i och med förra veckans räntesänkningsbesked. Inflationsmålet på 2% närmar sig, vilket är en skarp nedgång från de högsta höjderna på omkring 10%. Inflationsproblematiken har varit ett globalt fenomen. Samtidigt ser man nu att Europa och USA drar åt olika håll i utvecklingen. Hur ser makrobilden ut och hur påverkar detta räntebanan framgent?
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Warren Buffett, the world's most successful investor in absolute terms, does not see many buying opportunities in the stock market right now. Buffett simply does not see sufficiently attractive opportunities in the market.
Sampo Group achieved strong top line growth, while the positive underlying margin trends continued. However, the underwriting result was materially affected by very challenging Nordic winter conditions.
The Helsinki Stock Exchange has had a sluggish earnings season. Most companies reported lower revenues and profits, which was of course to be expected.
Equities are currently at record levels of popularity in the US. There are almost certainly darker times ahead if we look at the return potential years from now.
Turnarounds cannot be predicted, but they can be prepared for. While we don't know where the peaks will eventually occur, we can try to sense where we stand in the cycle now.
Investing in equities requires optimism, because the present value of listed companies is based on their future cash flows. The challenge is that change in particular is extremely difficult to predict reliably. In practice, most predictions go totally awry.
The increasingly expensive stock market demands steep earnings growth, while interest rates, which offer an alternative to equities, are also hovering at attractive levels. The US earnings slump ended in the fall of 2023, and now the focus is on finding signs of accelerating growth.
Fed rate cuts are of little importance to investors because they do not directly drive stocks. In practice, the return potential of stocks is measured against the risk-free interest rate on government bonds.
Nasdaq Helsinki has been stuck in a rut and has recently moved in line with expectations for policy rates. So you can see how a clear downward trend in interest rates would be positive for the Finnish home exchange. Apparently, a watched pot never boils.
While many investors are hunting for the AI boom winners, perhaps it might be worth asking yourself the next time you visit a gas station: what hidden winners can be found in boring industries?
At the Capital Markets Day held on 6 March 2024, Sampo introduced operating EPS growth as one of the main financial targets for the 2024-2026 strategic period. We aim to grow operating EPS by more than 7 per cent annually on average over the period.
The new Corporate Sustainability Reporting Directive requires companies to provide material information about company-specific sustainability topics. In the best case, analysts and investors might get additional beneficial details with which to assess risks and opportunities related to a company or a sector. Moreover, those details could also support capital markets to build their valuation assessments. In the worst case, CSRD reports may cause confusion, and even lead to nonintentional misleading of capital markets.
As the Helsinki stock market continues to stagnate, more and more investors are turning their attention to the United States. There's been a real rally in the American stock markets: The Nasdaq technology index is up by 60% since the bear market bottom in December 2022. The S&P 500 has reached new highs. Although European stock markets have also performed reasonably well recently, Europe has lagged the U.S. significantly since the financial crisis.
Börsveckan Investor Day är ett samarbete mellan Financial Hearings, Börsveckan och Placera. Bolagen presenterar sin verksamhet och därefter följer en frågestund ledd av Lars Frick journalist på Börsveckan. Det är ett begränsat antal fysiska platser tillgängliga, anmälan sker på länken nedan. Hela dagen kommer även att sändas digitalt.
Nordea's performance in 2023 was a glimmer of hope in a challenging market situation.
What does this mean for shareholders? This and many other questions will be addressed at Nordea's Annual General Meeting on Thursday, March 21. The meeting can also be followed through a live webcast, which is open to everyone.