Swedish krona the new 'safe haven': prediction
Clara Guibourg · 18 Dec 2011, 12:51
Published: 18 Dec 2011 12:51 GMT+01:00
The Danish investment bank has been reading the cards and gazing into their crystal ball, and have now released their 10 outrageous predictions for 2012.
Among probable and improbable suggestions such as a doubled price on wheat, an unknown outsider taking the White House and Apple stocks crashing, the bank predicts that the Norwegian and Swedish currencies will replace the Swiss franc as a safe haven in a debt-riddled Europe, thereby strengthening the Swedish krona.
"This is one of the predictions I really think could happen. It's built on Switzerland's probable success in defending itself and achieving a weaker Swiss franc," said the bank's head economist Steen Jacobsen to financial newspaper Dagens Industri.
"This means that the capital which has previously been flooding into Switzerland will be looking for new safe havens."
Saxo Bank's other sombre predictions include an Australian recession and a deepened European bank crisis, forcing banks to close for an extended holiday.
The bank's crystal ball also reveals that Apple may be in for a nasty shock during 2012, predicting that the tech company's stocks will plummet by 50 percent.
"Historically it's clear that no company has succeeded in retaining a market share like the one Apple has today," said Steen Jakobsen.