Economy

Stock market year 2024
Analysis: “The spell will break at any time”

The past 15 years have been characterized by exceptional growth on Wall Street, something that has benefited Swedish savers. The development has meant that American stocks dominate global index funds. However, DN's Carl Johan von Seth warns of a global “USA mania” that could have serious consequences.

“The spell will break at any time. There will be some kind of crash,” he writes in a comment.

DI's Mikael Vilenius is on the same track. He emphasizes that the frighteningly high stock market valuation in the US is creating great concern ahead of 2025.

“Nobel laureate Robert Shiller's cyclical and inflation-adjusted p/e ratio is at levels similar to those during the stock market crash of 1929, the IT bubble of 2000 and the stock market hysteria of 2021,” 

Vilenius writes in an analysis.

US unexpectedly strong in 2024 – thanks to households

Despite obstacles such as high interest rates and political uncertainty, the US economy continued to perform stronger than expected in 2024. Consumers can be thanked for that, writes Bloomberg. According to the news agency's forecast, households will spend 2.8 percent more this year than last year – which is twice as high an increase as expected.

Growth in the US has been around 3 percent at an annual rate for the past six quarters. In the third quarter, growth was 2.7 percent.

The coming year
"Those who are best off will notice the greatest relief"

In 2025, Swedish households are expected to receive financial relief through lower mortgage rates and tax cuts on income. But the effect will not be as clear for everyone, according to Avanza's private economist Felicia Schön.

– It is probably those who are best off who will notice the greatest relief, she tells GP.

Nordnet's savings economist Frida Bratt points out that the Riksbank has flagged for another cut in the key interest rate. She emphasizes that households can probably expect several cuts.

Food prices
New Year's food more expensive – chocolate and coffee stand out

The prices of New Year's food have risen during the year, according to Matpriskollen. The largest increase is for chocolate, whipped cream and coffee, where prices have risen by up to 19 percent.

Behind the increases are factors such as increased demand and lower production. Dairy products and chocolate are expected to become even more expensive after the New Year, according to Matpriskollen's CEO Ulf Mazur. He points to high world market prices and climate impact as driving factors.

Despite this, the prices of the entire New Year's basket have increased moderately by 1.4 percent during the year, thanks to reductions on fish and shellfish. However, the price of pizza, which is popular on New Year's Day, has remained stable over the past year.