Swiss consumers have weathered the negative interest rate environment with some resilience, but for how long remains to be seen, says Esty Dwek, head of global market strategy at Natixis Investment Managers. She calls for rates to move back to zero, although such a move by the Swiss National Bank would not happen before a tightening by the ECB—and unlikely for the time being.
Surprise growth from Switzerland’s biggest trading partner
Germany avoided a recession in the third quarter, even growing 0.1 percent, but it’s still too early for Switzerland to celebrate. The danger of a downturn hasn’t disappeared, says Frank Häusler, chief strategist at Vontobel Asset Management. For Switzerland, it’s of “paramount importance” that Germany’s manufacturing slump does not spill over into the larger services sector in the months to come.
Why it’s time to hitch a ride with “fellow travelers” gold and crypto
Gold-backed cryptocurrencies have been making a comeback, with more companies and government mints launching digital tokens backed by the precious metal. Gold investor John Hathaway says the move will make the commodity more transactional than it is today, and also explains why the precious metal and crypto make good “fellow travelers.”