Politics Is Now a Risk in Sweden, $10 Billion Fund Manager Warns

  • Significant risk for dead-lock after Swedish election: Ohman
  • Sees lowest expected market return since turn of millennium

Investors typically ignore Swedish politics.

But this year’s general election could be different, according to Swedish asset manager Ohman Funds. All polls indicate that none of the two major blocs will emerge with a majority and there’s little appetite to reach across the aisle among the biggest political parties.

“It seems impossible to form a new Swedish majority government as things stand currently,” said Pablo Bernengo, chief executive officer at Ohman Funds in Stockholm “The risk for a dead-lock is significant.”

And political turmoil at this late stage of a stock rally and economic upswing could have dire consequences, according to Bernengo. The stakes are high with the potential for a continued downturn in the Swedish housing market and slowing growth. The central bank…

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