The first month of the year was characterized by optimism and broad stock market gains, although the trend became more volatile towards the end with some profit-taking. The Stockholm stock exchange was among the strongest in Europe, while South Korea performed best globally and several Asian markets also advanced.
A stronger Swedish krona, especially against the US dollar but also against the euro, negatively impacted returns for investors with foreign holdings.
The managers point out that low interest rates in Europe and fiscal stimulus measures could contribute to a stronger economy going forward. Larger infrastructure investments, particularly in Germany, as well as several elections around the world, are also highlighted as factors that may affect the markets.
In the AI and tech sector, the debate continued regarding the returns on large investments.
Despite strong earnings reports, Microsoft fell by 9.02 percent during the month. Meta Platforms rose by 10.16 percent, Alphabet by 7.36 percent, and Amazon by 5.65 percent, while Dutch company ASML increased by 22.53 percent. All these companies are in the portfolio, and the fund increased its holdings in ASML, TSMC, and Alphabet while reducing its stakes in Meta and Apple.
The defense sector performed strongly, with Saab up 23.85 percent and Rheinmetall up 11.2 percent. The fund took profits in Saab and increased its position in Rheinmetall. Saab is described as having a high valuation in the short term, but with potential international growth opportunities.
The banking sector showed limited price movements despite strong reports. Swedbank rose by 6.55 percent, while JP Morgan fell by 6.02 percent. During the month, the fund increased its holdings in Swedbank, SEB, and Nordea without making any sales. The managers see continued opportunities for consolidation in Europe and believe that deregulation could benefit US banks, while dividends and buybacks might support share prices.
In the pharmaceutical sector, Novo Nordisk rose by 11.9 percent during the month. The fund increased its holdings in Novo Nordisk and Astra Zeneca and reduced its position in Eli Lilly. The managers note increased competition in the sector.
The managers assess that 2026 could be a strong year for the stock market, supported by low interest rates and fiscal stimulus, despite ongoing geopolitical uncertainties.
| Tellus Midas, % | January, 2026 |
| Fund MoM, change in percent | 0.9 |
| Fund one year, change in percent | 19.0 |
