/biz/ - Business & Finance

>>55749041
>Shouldn't be too risky to short
Haha, famous last words amirite, haha? But on a serious note; Sweden' economy is connected to two things: export and real estate. So while the currency going to shit has been really really good for most industry stocks (plus high inflation/low PPI), the crap currency has imported a lot of inflation for normal peeps.
Northern Europe (especially Swiiiden) is overmortgaged like hell. Basically everyone has a mortgage and what's more is that unlike the US where fixed long-term mortgages are the norm... here, people get short-term mortgages that are due for a re-financing.
As such, it seems normos are about to finally get fisted by the "high" rates.
You can't really raise the rates too much or too aggressively in Sweden lest you risk crashing the economy completely. Normos and real estate companies really went balls deep during the ZIRP policy and now are getting punished. And the rates ain't even high (inflation 8-10% vs. rates of 3.75% which is a joke).
And they honestly expect that the 25bps hike next month will be the LAST which is just... they expect 4% rates to crush core inflation of 8%, fuckin crazy. The currency as such has nowhere to go but down (general weakness + low rates + literally cannot hike).
But honestly, wage increases are soon upon us and that should be enough to placate the people. This clown market can go on for much longer than you think.
They have also been artificially lowering the electricity prices so they can manipulate the inflation.
This country is just straight up fugged. The typical swedish man is a gigantic retard.
You might think this would be easy to short but the Swedish industry can be far more resilient than you think. It has shown remarkable strength and their earnings have all been excellent, with most also giving good guidance

Wtf is EU doing? US dumped pretty hard yesterday but EU indices are in the blue? The fuck?