When the pandemic was a fact in March last year and the world reacted by closing down quickly, then the stock market collapsed.
But since then, development has gone up and record after record has been broken.
- It is paradoxical that the stock market has done so well as a result of the pandemic, but it is because of these enormous stimuli and support packages, says Frida Bratt.
Tech companies went best first
It is stimulus money and low interest rates that have made the rise on the stock market possible.
First it was tech companies that did the best, then we got positive vaccine news in November and then more cyclically sensitive industries caught up.
- Then a shift began on the stock exchange and the engineering companies began to go better as we received signals that life may soon begin to return to normal.
The Stockholm Stock Exchange has performed exceptionally well and that is because we have so many engineering companies and banks.
"How much gunpowder is left?"
One day, politicians will lift support packages and central banks will raise interest rates.
It does not seem to be time for those measures yet, but Frida Bratt still does not think that savers should expect sharp rises.
- The stimulus is rolling for a while and we do not receive signals that the central banks will raise interest rates, especially not from the US Federal Reserve, which is perhaps most important to keep an eye on, but I do not think one should expect any new big rises. Not a race either, but a slightly sadder, more moderate development. The stock market will continue to roll upwards for a while longer, but the question is how much gunpowder is left?