EWD - EWD: A Suboptimal Allocation As Inflation Clouds The Outlook

• EWD is around $543 million portfolio of mostly asset-heavy Swedish companies from the upper- and mid-cap equity echelons.
• This year, EWD has hit a rough patch, in sharp contrast to its stellar 2021 when it outperformed its Nordic peers EDEN and NORW.
• Surprisingly, strong inflation in the country made the Riksbank abandon the ultra-loose monetary policy. However, this is unlikely to bolster EWD's returns meaningfully.
• With forecast inflation up and the GDP growth rate down, EWD has a rather risky equity mix at the moment. It earns only a Hold rating this time.

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