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Why investors need to be wary of exuberant spending plans

Analysis by Saxo Bank suggest that investors should spring clean their actively managed portfolios ahead of market movements
Why investors need to be wary of exuberant spending plans
  • Further Reading – Saxo Bank quarterly outlook
  • The Danish investment bank offers warnings over reduced equity returns and increased cost of capital
  • Stimulus spending plans and a focus on social equality could have a negative impact on the markets 
  • How can investors prepare?

Saxo Bank, a self-styled “facilitator in financial markets”, operates trading platforms for dealing in equities, funds, commodities, bonds, foreign exchange and derivatives. The bank has its headquarters in Copenhagen, but it has a broad international scope, having entered into dozens of partnerships with financial institutions where Saxo tech is rebranded and made available under the client company’s service offering. Given the nature of its business and its interaction with businesses across the financial spectrum, its pronouncements on forward market trends should command our attention.

The investment specialist’s second-quarter outlook for global markets makes for interesting, if not slightly unsettling, reading. Saxo has put together its forward analysis at a time when the US public purse is undergoing an expansionary phase unparalleled in peacetime.

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