A look at the Scandinavia Economies Milestone AMG has been regarded by its peers as one of the best Independent Financial Advisory firms consistently providing the latest and most profitable financial solutions to today’s investors.
Milestone AMG has been regarded by its peers as oneof the best Independent Financial Advisory firmsconsistently providing the latest and most profitablefinancial solutions to today’s investors. We believethat even though the markets change on a daily basis,the principles for investing always remain constant.Our investment research is not just based on themajor indexes. When we look for new and excitingopportunities we will search all indices for the rightrecommendations. Today we look at Scandinavia (alsoreferred to as the ‘Nordic’ region) as we research thefour countries that make up the region: Denmark,Finland, Norway and Sweden.
THE NORDIC ECONOMYEconomic GrowthThe regional economy grew by a healthy 2.5% in2011, but lostmomentum towards the end of the year. Growth is expected to slowdown in 2012, but contraction is not anticipated for any of the Nordiccountries. GDP is forecasted to rebound to some 2% in 2013. Publicfinances remain relatively well contained and all maintained triple-A ratings on government debt. With the current European crisis infull motion, the Nordic economies offer an alternative to the majorEuropean markets.Interest RatesLong term interest rates remained low across the region in the firstquarter of 2012. Yields on 10-year government bonds were belowinflation in Denmark, Norway and Sweden again proving the region’seconomic strength.
Retail SectorThe retail sector fundamentals have generally been good in the Nordiccountries thanks to healthy growth in private spending. This trend isexpected to continue throughout 2012, with the exception of Denmarkwhere the awaited recovery has not materialized just yet. Increasedconsumer spending is always a sign of confidence within the economyand can only be seen as a positive reflection of how the current sentientwithin these specific countries is viewed.Industrial ProductionIndustrial production has lost some momentum in recent months. Still,production is seen to have grown slightly (year on year) in 3 out of fourcountries. Again this separates the Scandinavian economies from therest of Europe and we expect this to continue through the rest of 2012.We believe by taking a diverse look at our clients’ assets we can protectthem against the most volatile situations presented in today’s currentmarkets. As always, asset allocation is the key to a healthy andproductive portfolio.