SNB & CHF

The link between the transatlantic slave trade and industrial growth in Britain is a recurring theme in public discussions. There is a widespread assumption that the profitability of the slave trade requires Britain to compensate the descendants of Africans, since slavery helped to enrich some institutions. It is true that the slave trade made profits, but its contribution to the economy was marginal. Technological change rather than the slave trade was the force...

If those on the opposite side of the trade are viewed as threats rather than friends, it’s time to revise the analysis. Of the many self-generated dangers investors face, few are more dangerous than confirmation bias, the comfort we experience seeking out views that confirm our own positions and our resistance to studying opposing views. Confirmation bias is both self-evident and complex. We all understand the psychologically soothing feeling when others heartily...

Electricity consumption in Switzerland remained at normal levels last month despite a government appeal for households and industry to make savings. On August 31, ministers urged the population to voluntarily reduce consumption ahead of anticipated shortages this winter. Recommended measures included turning heating down and switching off lights. Both the Tages Anzeiger and Neue Zürcher Zeitung showed figures on Saturday that suggests this plea has so far fallen...

Are investors at the point of maximum pessimism? Alhambra CEO Joe Calhoun talks about a horrible 3rd quarter, sentiment, and where investors can look right now. [embedded content] [embedded content] Tags: Alhambra Research,Bonds,commodities,currencies,economy,Featured,Federal Reserve/Monetary Policy,Markets,newsletter,Real Estate,stocks

Goodbye and good riddance to the third quarter of 2022. That was one of the wildest 3 months I’ve experienced in my 40 years of trading and investing. The quarter started off great with the S&P 500 rising 14% from July 1 to August 16 but ended with a 17% swan dive into the end of the quarter. And we closed on the low of the year. The 10-year Treasury yield rose from 2.97% to 4% just a few days before the end of the quarter. The 3-7 year Treasury index – our...

Bank of England responds to gilts, but is it guilty of nothing more than being the first of many more to come? Talking it over with Steve Van Metre, we find that markets aren't pricing this as an England thing, nor a Bank of England thing, rather just the beginning of a global deflationary wave all central banks will have to deal with before too long. Eurodollar University Conversations, featuring Steven Van Metre. Twitter: https://twitter.com/JeffSnider_AIP...

Bank of England responds to gilts, but is it guilty of nothing more than being the first of many more to come? Talking it over with Steve Van Metre, we find that markets aren't pricing this as an England thing, nor a Bank of England thing, rather just the beginning of a global deflationary wave all central banks will have to deal with before too long. Eurodollar University Conversations, featuring Steven Van Metre. Twitter: https://twitter.com/JeffSnider_AIP...

Overview: The markets begin October with some trepidation.  Rumors continue to circulate about the health of a large European bank, cross currency swaps are elevated, suggest dollars are more difficult to access.  The S&P 500 settled on new lows for the year at the end of last week.  China and South Korea on closed for national holidays. Chinese market will not open until next week, and Hong Kong markets are closed tomorrow.  While the Nikkei advanced, the other...

The Swiss franc has hit an all-time high against the euro. Even though it trades at an unprecedented CHF0.95 to the euro, the strong franc no longer poses a threat to the Swiss economy. What has changed in the last ten years? More from this author On September 6, 2011, at 10am, the then president of the Swiss National Bank (SNB) Philipp Hildebrand made an important announcement to the media: “With immediate effect, the SNB will no longer tolerate a...

Landlords and tenants are opposing government calls to reduce household heating to 19 degrees Celsius, warning it might spark a flurry of lawsuits. The Swiss Real Estate Association, which represents landlords, warns that turning down the heating in rented accommodation could result in a legal backlash. The 19 degree heating target was a specific measure contained in a voluntary energy saving campaign launched by the government in August. But legal experts point...