Equity Strategy

Market expansion to continue despite two speed recovery risks. Nordic recommendations are:

• Buy Nordic ‘potential takeover targets’. The global economic conditions are favourable for a global M&A pick-up, last seen in 2003-04.
• Buy Nordic yield cases (dividend, share buyback and free cash flow). The payout season is fast approaching and with EPS growth of nearly 40% in 2010, the pay-out potential is good.
• Buy Nordic catch-up cases. We expect investors to look for performance laggards after a +20% performance over a six-month period.
• Buy our Nordic top picks. Sweden: Volvo, Swedish Match, ABB, Finland: Nokia, Sanoma, Metso, Denmark AP Moller Maersk, Royal Unibrew, Novo Nordisk (NEW) and Norway: Seawell, Norwegian Energy, BW Offshore. Market potential and risks
• In H1 11, we expect the global stock market to rise by further 5-10% on continued strong earnings momentum.
• We expect higher volatility than experienced in H2 10. Our tactical indicators are suggesting an overbought market.

 Read more about the Equity strategy here