AMWatch

Fear priced in has Norway’s biggest bank going long on stocks

The allocation managers at Norway’s largest bank are betting the worst has been priced into the global markets.

Photo: PR

“A lot of fear is priced in,” said Torje Gundersen, head of allocation and selection at DNB ASA, in an interview last week. “If the fear doesn’t materialize, it’s correct to be positive to stocks.” Global stock markets have rebounded in June. The MSCI ACWI Index is up 13 percent so far this year.

Gundersen’s team, which manages about NOK 40bn (USD 4.6bn), is overweight stocks, high yield and Norwegian investment grade bonds while it’s underweight global investment grade bonds and Norwegian money markets.

"Our most important argument for that is liquidity,” he said. “The monetary policy is more expansive now than 5 to 6 months ago. That’s normally positive for the market.” Gundersen doesn’t see a full scale trade war between the U.S. and China as Donald Trump wants to be re-elected.

“In the end we think the rational arguments will win,” he said. “It’s just a very ugly way of negotiating. There will probably be an agreement in the end because both countries have too much to lose.”

Read the whole article

Get 14 days free access.
No credit card required.

An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

After two years of preparation: Robur launches dark green prestige fund

Sweden's largest fund manager is launching a climate impact fund with Swedbank's insurance unit as anchor investor. "We've had some great interest from larger investors and are in close contact with several potential investors that have expressed an interest," the new fund's portfolio manager tells AMWatch.

Further reading

Trial banner

Latest news

Jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch