Nordic Equity Strategy
Carnegie’s winter edition of the Nordic Equity Strategy Report presents positive market drivers for equities that will prevail during 2014. The market is estimated to climb in line with earnings growth, meaning that earnings multiples will not expand any further. Drivers for the market are improving earnings, low interest rates and increased M&A activity.
Global growth is expected to improve during the period 2014-2015 as Europe and the US take off, while emerging market growth will hold steady. The European recovery has started and will gain momentum in 2014 when consumer spending will improve. The US should accelerate as the fiscal policy headwind ebbs, the housing recovery continues and capex gains speed. The Fed will start tapering during the spring, which should support the USD. Bond yields will climb moderately as inflation will remain low.