Stockholm Stock Exchange started the year 2025 on a strong note, but faced some setbacks as Chinese AI challenger DeepSeeks made significant strides, putting pressure on major players. As of now, the market is up 6.6% for the year.
According to Nordea’s senior investment strategist Maria Wendestam, Swedish investors should consider global funds as a base along with Europe and US funds. For those averse to risk, a simple approach involving bond funds may be more suitable.
Wendestam suggests, “If you’re not interested in taking risks, then your savings should be as simple as possible and include bond funds.” However, she also advises adding a bit of spice to the mix by allocating around 20% to a more specialized option, such as a broad emerging market fund. This strategy helps diversify regional differences in the portfolio.
One area of interest for Wendestam is small-cap companies. She believes these companies have been overlooked for a long time and sees potential for growth, particularly in the US.
I think Donald Trump can be a good driver for them. He has now implemented his America First strategy, and there are threats of tariffs for foreign players. Many small companies operate more domestically, so for the American market, Trump will likely favor domestic players,” Wendestam explains.
To gain exposure to this sector, investors can consider an American small-cap fund. Wendestam also highlights that the growth opportunities are much larger for American small-cap companies compared to Swedish ones.
When it comes to AI as a theme, Wendestam continues to find it intriguing. She notes the ongoing advancements in AI tools and infrastructure, as well as the continuous influx of new players in the AI space.
During Monday’s trading session, the market witnessed the unveiling of a new AI model by Chinese company DeepSeek, sparking discussions about the US’s dominance in the sector.
Regarding AI funds, Wendestam believes they can be a valuable addition to a portfolio, as long as they are kept as a small portion. She emphasizes that investing in a fund provides diversification benefits compared to individual AI stocks.
In conclusion, while the market dynamics continue to evolve, opportunities in small-cap companies, AI, and global funds present attractive options for Swedish investors looking to diversify their portfolios and capitalize on emerging trends in the market.