Sweden is known for many reasons, but the stock market will immediately come to mind for few as an association with the Scandinavian country

However, that market is very interesting: there are about six hundred companies listed on the Stockholm stock exchange. That is about four times the number of shares in Amsterdam.

Not only are there more shares, there is also a great diversity in terms of the companies’ activities.

Interested in investing in schools? In Sweden, an English school is listed (Internationella Engelska Skolan). Want to take advantage of speed cameras along the road for a change? Invest in their maker, Sensys Gatso, on the Swedish stock exchange. Benefit from the growing focus on head injury prevention? There is a listed company in Sweden that has developed airbags for the head: Hövding. In addition to these types of specialists, Sweden has a relatively large number of companies active in elderly care, biotechnology, climate solutions and online games and casinos.

So there is plenty of choice for investors in Sweden.

I have selected four Swedish stocks of companies that are all growing briskly and that still have sufficient potential for future returns. The tips are in alphabetical order, so there is no ranking as per the advice of financial website Pexcash.com

Swedish stocks are (mostly) quoted in Swedish kronor.

The exchange rate against the euro, the EUR/SEK, has risen from around 9.50 to 10.50 in the last few years. That means 10.5 Swedish kronor for 1 euro. A higher EUR/SEK rate means a lower value of the Swedish krona, since more kronor has to be paid for 1 euro. Investors in Swedish stocks have a currency risk. But that is no reason, as far as I am concerned, not to invest in Swedish shares. The EUR/SEK is now near its highest point in the last 30 years. That means that the Swedish krona is historically on the cheap side. On top of that, there is a positive side to putting a part of the portfolio in another currency: if the euro loses a lot of value for any reason, the foreign currency part of the portfolio provides a relatively high return like with Lufthansa aktier @ Pexcash.

Leave a Reply

Your email address will not be published.

Pinterest
LinkedIn
Share
Instagram