September was marked by notable gains in the stock markets. The OMXS30 rose by 1.2%, the MSCI World Index increased by 3.3% and the Nasdaq Composite rose by 5.6%. This indicates continued strong global interest in equities, particularly in the technology sector, while investors welcome the more stable inflation situation and expected interest rate cuts. The krona ended largely unchanged against the US dollar after both ups and downs during the quarter.
Recent developments show that optimism has regained a foothold. Although September is historically often a weak month, stock markets rose in most places, which meant that the quarter as a whole also ended with positive results in the majority of markets. The Fed resumed its interest rate cuts, and further cuts are expected in the autumn. More stable inflation prospects, an increased focus on growth and the labour market, and the so-called AI narrative, spearheaded by US technology companies, have contributed to a more positive risk sentiment.
During the year, we have seen more defensive companies perform well on the Stockholm Stock Exchange. In times of uncertainty, this is nothing new, and history gives cause for optimism. We saw similar patterns in 2006–2007 and 2011–2012, when weak initial performance by quality companies was followed by a strong recovery, with these companies delivering significantly better returns than the market as a whole.
This reminds us of an important fact: the market always moves in cycles. Shorter periods may be characterised by turmoil and uncertainty, but over time it is companies with sustainable profitability, stable cash flows and strong business models that are rewarded. As Peter Lynch put it: “I can’t say enough about the fact that earnings are the key to success in investing in stocks. No matter what happens to the market, the earnings will determine the results.”
For us, this means focusing on companies that can navigate different market conditions, continue to create value and grow in the long term, even when sentiment is temporarily against them.
As of 31 July 2025, our Nordic fund, NE Strategy, has received the highest rating of 5/5 in Consistent Return over 5 years, 10 years and overall. Consistent Return is one of the rating categories included in LSEG Lippers’ ‘Lipper Leaders Rating System’. It measures how consistently a fund has performed over time, by weighing both return and risk. A high rating means that the fund has not only delivered good returns during individual periods, but has also shown stable performance across different market conditions.*
Fact sheets and information brochures are available on request or at www.nordeq.se
*The fund’s performance is stated in SEK and shown after dividends and fees. Inflation has not been taken into account. Past performance is no guarantee of future returns. The money invested in the fund can both increase and decrease in value, and there is no guarantee that an investor will recover the amount invested.
