Storebrand AM returns to overweight in global equities – leans on TACO

Oslo, 8 April 2026 – Following significant market volatility in March and persistently high energy prices, Storebrand Asset Management has increased its global equity exposure. At the same time, the asset manager highlights rising stagflationary risks in the global economy, characterised by higher inflation and weaker growth momentum.

This is outlined in the monthly report from Storebrand AM’s Strategic Allocation Team, led by Olav Chen.

Higher oil prices and rising stagflation risk
One month after the attack on Iran, oil prices remain elevated at around USD 110 per barrel (Brent). Volatility has been pronounced, with prices temporarily reaching USD 120 per barrel during the month. Restricted traffic through the Strait of Hormuz and uncertainty surrounding a potential ceasefire have contributed to sustained pressure in global energy markets.

-Persistently high oil and energy prices increase the risk of stagflation globally, implying higher inflation and weaker growth if such conditions persist, says Olav Chen, Head of Allocation and Global Fixed Income at Storebrand AM.

In the United States, average gasoline prices have risen above USD 4 per gallon – the highest level since 2022 – weighing on household purchasing power and near‑term growth prospects.

Sharp rise in yields and market repricing
Rising inflation concerns have triggered a sharp repricing in global bond markets. Expectations of rate cuts have largely been priced out, with market pricing now shifting towards rate hikes across several regions.

-This is a classic supply‑side shock scenario. While central banks face a difficult balancing act, inflation developments cannot be ignored, particularly in economies where inflation has remained elevated for an extended period, Chen says.

Global equities back to overweight
Global equities, measured by the MSCI World Index in local currency terms, declined by close to 6 percent in March. Storebrand AM reduced equity exposure early in the month but has since rebuilt positions over recent weeks.

-While stagflation has historically been challenging for equity markets, valuations have adjusted and markets increasingly reflect downside risks. At the same time, we expect that market pressure and political considerations could support a degree of de‑escalation, Chen says.

Storebrand AM has therefore moved back to an overweight position in global equities.

Emerging markets: continued overweight
Emerging market equities also declined in March but remain in positive territory year‑to‑date and continue to outperform developed markets over a longer horizon.

Several major emerging economies are net energy importers, which increases near‑term vulnerability to high oil prices. However, many countries are currently drawing on strategic reserves, helping to buffer the immediate impact.

Despite short‑term volatility, Storebrand AM maintains an overweight position in emerging markets, supported by relative growth prospects and longer‑term structural drivers.

Norwegian and Swedish equities
The Oslo Stock Exchange rose by 9 percent in March, reaching a new all‑time high, driven by the sharp rise in oil prices. Following the strong rally, Storebrand AM has realised profits and reduced Norwegian equities from overweight to neutral.

Swedish equities, measured by the OMXS30G Index, declined by 8 percent in March after several months of strong performance. Despite the correction, the market remains up around 4 percent year‑to‑date.

-Following the decline, Storebrand AM has gradually increased exposure to Swedish equities again. Valuations have become more attractive, and the firm therefore maintains an overweight position in Swedish equities, Chen says.

Rates and credit
Global government bonds declined by around 2 percent in March – the steepest monthly fall since 2024. Storebrand AM has taken profits on its underweight duration position and moved to neutral duration in global government bonds.

In credit markets, spreads have continued to widen, but Storebrand AM maintains an overweight position in credit and corporate bonds, reflecting selective opportunities following repricing.

Asset allocation overview – April 2026
Global equities: Overweight
Emerging markets: Overweight
Norwegian equities: Neutral
Swedish equities: Overweight
Global government bonds: Neutral duration
Norwegian and Swedish government bonds: Neutral duration
Credit: Overweight

For additional comments or interview requests, please contact:

Andreas Buoen
Communications Manager
Phone: +47 940 32 599
E-mail: andreas.buoen@storebrand.no