Monthly Comment August 2020

During August, the financial markets continued to rise. The positive momentum was led by growth companies in the tech sector and the Nasdaq Index rose sharply. During the month, some economic statistics were reported, including GDP numbers for Sweden. As expected, they showed a declining growth in line with the rest of the world. However, we are seeing some recovery in economic activity since the sharp declines during the spring. From the central banks, the biggest news was that the US Federal Reserve announced that they were leaving their strict, current inflation target of two percent and instead allowing inflation of two percent over time. This means a more flexible approach where periods of both lower and higher inflation are allowed.