Late cycle is not end cycle – Opportunities in the front end of the US Yield Curve

The US economy has continued to expand for almost a decade, prompting policymakers at the US Fed to raise interest rates for the third time this year, to 2.25%. Moreover, a rising rate environment spurred by QT from the Fed and ECB could prompt more late-cycle signs, thus maintaining downward pressure on long-term bond yields, [...]

Aborted lift off – The never increased interest rate

After two months of an increasingly volatile market and an October with the most negative performance since 2008, there is a demand for alternative investments to generate a return beyond the stock market. This analysis will further describe an approach to earn this return.  Sweden is an archetypical open economy, and its export-oriented companies are [...]

The bearish euro and the loonie goose – Euro risk presents opportunities in the Canadian dollar

The Canadian economy continues to operate close to its potential and growth is more balanced, where Bank of Canada (BoC), is on the policy normalization path and has moved in synchronization with the Fed´s monetary policy. Furthermore, the Canadian economy is positively exposed to oil prices, but the heavy oil from Alberta has not enjoyed [...]

Dollar on a roll – Strong economic outlook continues to point towards a stronger U.S. dollar

Over the past 6 months, the USD has shown great strength against many of the world’s currencies, as its economy has reached new highs since the financial crisis in 2008. Comparing the USD with the Japanese Yen, the same characteristics are seen where the USD spot rate has been recovering parts of its losses observed [...]

The bearish U.S. dollar – The prospective future for the U.S. dollar spot index

The USD currency rate has been a highly discussed topic during the recent year, due to the continuously increasing value partly as a result of a higher economic growth and decreasing unemployment. However, several upcoming macro events, as the upcoming midterm election, rate hikes and protectionist campaign, could have a negative impact on the U.S. [...]

Welfare – The future for Swedish welfare companies

In this market report, analysts Olle Göransson and Patrik Nilsson evaluate the welfare market in Sweden. The market is highly fragmented and is expected to grow based on higher demand for private services and estimated favorable demographic development. Furthermore, the market is highly affected by political decisions and regulations, hence the analysts tries to determine [...]

Straddling the S&P 500 – What’s next for US equities?

Since its low point in the midst of the financial crisis in 2009, the S&P 500 has advanced by around 16.35% annually for the past nine years, making US equities one of the best performing asset classes in recent years. However, since the beginning of 2018 the market has been unable to keep up its [...]

The Swedish Real Estate Market – Recent Trends and Future Sector Outlook

In this market research report, analysts Oscar Johannesson and Enes Ljuca evaluate the Swedish Real Estate Market. The aim with this report was to first conduct a thorough market analysis on the Swedish property market to be able to identify interesting investment cases based on recent market trends. This report will further analyze four different [...]

Safe Harbor – Japanese Small-Cap offers long-term value and a trump card in trade war

Since February 2018, Donald Trump and Xi Jinping have been trading threats of imposing tariffs against each other’s economies. As a risk-conservative option in this environment, we suggest investing in the Japanese domestic market: instead of looking for U.S. or Chinese investment alternatives and betting on whether a trade war will materialize, investing in Japanese [...]

Bearish on U.S. Tech – Reasons why you should move out of tech stocks

Technology stocks have been performing extremely well in recent years. According to J.P. Morgan, the technology sector has gone up by 130% over the last 5 years. However, this growth might no longer last for multiple reasons. First of all, the U.S. tech stocks has seen similar returns that rival the dot-com run up, indicating [...]