In parallel with this year's turbulence on the US stock exchanges, the Swedish krona has strengthened significantly against the dollar, an increase of almost ten percent since the turn of the year. This is more than any other comparable currency.
Good news for Swedish travelers who get more for their money abroad, but bad for those who own shares in the US. And many Swedes do, either directly or indirectly through their fund holdings. One of Swedes' largest holdings is the car manufacturer Tesla.
The stock is very popular among Swedes. And the price is currently down about 45 percent in dollars – but 50 percent in Swedish kronor, says Frida Bratt.
American Tech
She emphasizes that the weak krona against the dollar that we have seen in recent years has meant that, among other things, Tesla, global funds, US funds, and tech funds have performed better for Swedish savers than they would have otherwise. But now it has turned. And as a saver, it is important to be aware of how high exposure you have and the risks involved.
Look at your funds and see what they contain. A global fund, for example, contains a lot of American tech and may need to be supplemented with a European fund or an emerging market fund and a Sweden fund, so that you get something else too, says Frida Bratt.
Even for Swedish pension savers, the turbulence on the US stock exchanges in combination with the krona effect risks being noticed. 5.7 million savers, for example, have the state-managed alternative AP7 Såfa for their premium pension. The equity fund has 69 percent of its holdings in North America and several tech giants, including Tesla, in its portfolio.
Roller Coaster
AP 7 states through its capital management chief Lena Fahlén that they are closely following the development and analyzing the next step in their ownership management.
"The Tesla stock has been on a roller coaster due to Elon Musk's close relationship with the Trump administration, which is problematic. In addition, we are concerned about the working conditions within the company", she writes in a comment to TT and does not rule out that the company will be blacklisted if no other measures take effect.
"Regarding the Swedish krona, we do not normally hedge our holdings, which means that the krona's development affects the portfolio's return", she continues.
Is there then reason for concern for Swedish pension savers? Frida Bratt at Nordnet does not think so.
Saving is long-term, and during this time, things will happen on the stock exchange. But spread the risks and you reduce vulnerability, she says.
