Most of the reporting season over – more optimistic signals from companies!
Following several months of upward momentum, numerous global stock markets experienced a period of consolidation or slight decline in April, indicative of a natural correction following a period of growth. Notably, the Stockholm Stock Exchange demonstrated resilience, registering a marginal decrease of 0.6%. US indices, the S&P500 and Nasdaq, concluded April with declines exceeding 4%, primarily influenced by persistent inflationary pressures in the US and the anticipation of a delay in interest rate adjustments.
In addition to the focus on interest rate developments and geopolitical concerns, the reporting period has dominated the news flows. Approximately two thirds of companies listed on the Stockholm Stock Exchange exceeded earnings projections, with generally favorable market reactions. Overall, economic indicators have remained stable or cautiously more optimistic. In the US, 77% of S&P500 companies surpassed earnings estimates, although with more modest sales performance. Noteworthy across both Swedish and US companies is the uptick in profitability levels.
Our funds continue to deliver strong performance. Our Nordic fund, NE Strategy, has surged by over 13% since the year’s start. Furthermore, NE Our World, our fund focused on a better world, has performed good returns relative to benchmark indices, see more details below. Meanwhile, NE Global Stars, in its seventh year, has maintained a steady, annual average return of 12% over the past five years, meriting a five-star rating from Lipper for consistent performance.
