Insights

Global equities declined further in September, by 4.1% (USD terms), and global government bonds also fell by 1.6% (USD, hedged terms).

Humans are irrational beings, yet economic theory often assumes we are perfect decision makers. In this Quarterly Letter we examine some of the common mistakes people make, and explain how acknowledging these flaws can strengthen, rather than weaken, our investment decisions.

Lombard loans, also known as portfolio loans, allow you to borrow money against your assets such as stocks and bonds without selling your investment portfolio. This guide explains how you can use such loans to maximise your wealth.

The 12th edition of Mosaique Insights takes a closer look at an industry that has experienced significant transformations in recent years and explore how we can assist our clients in navigating complex market environments. Additionally, we shed light on the asset class of private markets and take you on a trip to the United States with our equity research team.

Psychiatrist and explorer Dr. Bertrand Piccard made aviation history with his successive non-stop around the globe flights in a balloon and a solar airplane. In our interview, we trace back his aeronautic firsts, discuss the importance of perseverance and make the case for Switzerland's investment opportunities, as a country rife with high-tech innovation.

Over the past months, narratives dominated by central bank tightening producing an inevitable recession have faded from the scene. However, the economic outlook remains particularly uncertain amid further deterioration in business confidence.

Global equities fell by 2.8% in August (USD terms), alongside global government bonds which edged lower by 0.1% (USD, hedged terms).

Insights into the key drivers behind the outlook for China's economy as well as an update on the Q2 earnings results so far.

Global equities rose by a further 3.7% in July (USD terms), while global government bonds edged lower again by 0.3% (USD, hedged terms).

After some resilience in early 2023, the economic outlook remains particularly uncertain amid further deterioration in business confidence. Yet, investors continue to foresee a soft landing.

Insights into the key drivers behind the outlook for China's economy as well as an update on the Q2 earnings results so far.

Investors remain convinced that inflation is likely to come down without much of a hit to economic growth. However, there is not much historical precedent for such an outcome, especially since monetary tightening is not completed, and the effects of higher policy rates are yet to be felt completely.

Business surveys suggest that growth will slow further in the second half of 2023, while stubbornly-sticky core inflation is keeping central banks on their toes, and policy rates have yet to peak. In the latest episode of Perspectives from Wealth Management Switzerland, Laura Künlen and Global Investment Strategists Kevin Gardiner and Victor Balfour discuss why a more dramatic economic setback still feels neither necessary nor likely and why we should question artificial intelligence pessimists. Subscribe to Perspectives on Apple Podcasts and Spotify.

Italian merchant Marco Polo spent 25 years travelling across Asia at the end of the 13th century, seeking insight into new communities and cultures. In this Quarterly Letter we explore how there is still long-term value in looking beyond borders today.

Headline inflation rates have turned lower, spending power is getting some relief, and transatlantic business surveys have softened. But there are still geopolitical, environmental, and social concerns impacting the long-term outlook. We provide an update on the macroeconomic environment.

In this Strategy blog, we take a look at how a few different economies have performed around the world: Japan, China, the United Kingdom, and Greece.

Despite the US large-cap tech stock rally in May, global equities fell by 1.1% and global government bonds declined by 2.2% (USD, unhedged terms).

What does the job profile of a private banker look like and what are the challenges when it comes to preserving wealth? Laura Künlen and Giovanna Lagutaine, Market Head Switzerland, discuss these questions and more as well as explore the Rothschild & Co Art Collection.

Markets have quickly regained some poise, but it is still too soon to conclude that we are out of the banking and economic woods. In this edition of Market Perspective, we review cyclical risk and update our inflation monitor, before evaluating economic performance of different countries.

While tracking a firmer pace than feared in Q1-23 GDP, incoming reports suggest much of the strength can be attributed to China. Meanwhile, central banks have continued their tightening campaign amid stubbornly firm wage growth and sticky core inflation. Will they continue until something breaks?

The recent stress in the banking sector seems to have abated but there remain many questions. In the latest episode of Perspectives from Wealth Management Switzerland, Laura Künlen and Global Investment Strategists Kevin Gardiner and Victor Balfour share their latest thinking on the economic backdrop and what this means for the markets.

The US debt ceiling is currently at $31.4tn and the total stock of outstanding government debt reached this level back in January. Since then, unable to issue any new debt, the Treasury has been depleting its cash balance. Despite this, we discuss why we believe the US will not default.

Family businesses are the backbone of the global economy and have been firmly rooted in society for centuries. In our latest Investment Views, we explore the secrets to the success of family businesses and highlight one inspiring example of a family-owned company which can look back on a 128-year history.

Despite concerns over the banking system (the MSCI World Banks Index declined by 12.2%), global equities rose by 3.1% and global government bonds rallied 3.7% in March (both in USD terms, unhedged). Find out more in Wealth Management Switzerland's latest Monthly Market Summary.

Is the collapse of Silicon Valley Bank (SVB) —and other recent banking system events—the butterfly that will cause a financial tornado? This edition of Market Perspective provides an update on the banking system and how inflation is continuing to moderate, albeit patchily.

Few would have predicted recent tumultuous events in the banking sector. In the latest episode of Perspectives from Wealth Management Switzerland, Laura Künlen and Global Investment Strategists Kevin Gardiner and Victor Balfour provide an update on the banking sector and discuss what this means for investors.

As focus shifts from the collapse of Silicon Valley Bank last week to the solvency Credit Suisse, central bank interventions have soothed fears of the contagion spreading. In this strategy blog our team analyses why our overall risk appetite remains unchanged.

This International Women's Day we open the door to the Rothschild Archive. In the latest episode Wealth Management Switzerland's Perspectives podcast, Laura Künlen and Melanie Aspey, Director of the Rothschild Archive, shed light on how the women of the Rothschild family shaped the early days of the business and how their legacy translates till today.

Lower commodity prices, including energy prices, are trickling down to consumers, affecting both sides of the Atlantic slightly differently. In this strategy blog, we examine how the energy crisis has abated a year after the outbreak of war in Ukraine and its impact.

Capital markets experienced a difficult February, as renewed interest rate risk from further monetary tightening moved into focus. Both global equites and government bonds fell last month.

A challenging and unusual cyclical backdrop has impacted the credit cycle. Credit spreads have narrowed and default rates remain low, with relative debt position declining due to faster nominal growth and ongoing deleveraging. As momentum continues, credit spreads may narrow more.

Falling real income, rising inflation, and monetary tightening have led to a sense of economic fatalism. However, throughout Europe, the UK, and the US, signs are suggesting a (hopeful) turn of events, making for a better outlook for the year ahead.