“Far from a Clear Buying Opportunity”
The market has been trading on this theme for a while now.
“I think that from here, there is actually a chance that things could get a little better. It doesn’t necessarily mean that the market will continue to be extremely negative from here,” says Björsell.
Neither he nor Isaksson believe that it is time to hit the buy button today.
“The real sense of panic that prevails today may not last,” says Mattias Isakson. He does not believe that the announced tariffs are the ones that will actually come into effect, but rather that this is an ongoing negotiation.
And depending on how Europe responds this afternoon, the market may also calm down.
“I find it a bit fascinating. Normally, when we have total risk-off in the market like we do now, the Swedish krona does not perform as it is currently. It is not possible to compare what we are seeing now with previous historical periods. This is something unique that clearly changes and worsens. The volatility will continue. I think one should be calm in the coming days to observe,” he adds.
Looking at estimates for Swedish companies, they have come down a bit, but there is no recession fear in the expectations.
“If we consider how this affects global GDP, estimates should come down further, and then the valuation drop does not look as attractive. So far, it’s only the P that has moved and not the E to the same extent. It will come,” says Björsell, emphasizing, “It’s far from a clear buying opportunity.”