According to analysts at Nordea Markets, hard evidence of fundamental support for a recovery is still lacking for markets and they expect the sluggish market trends to linger for some time as we step into the 2019.
Key Quotes
“When seeking support for a risk appetite recovery, we look at the series of events that led us to expect negative returns in equities.”
“Credit spreads should trade higher and equity returns remain in negative territory. Valuation metrics and risk premiums have not yet reached levels that can absorb headwinds from the soft top-line growth, squeezed margins and higher interest rates. We do, however, see early indications of a potential tide change during 2019, possibly by late Q2.”
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