While the broader market for Swiss stocks has risen modestly this year, one 'entity' has outperformed its peers by such a staggering margin, it has left bamboozled market experts struggling for an explanation. And that company is…the Swiss National Bank. The price of a share in Swiss National Bank in August rose above 3,000 francs ($3,143) for the first time, more than double the level of a year ago, and up 50% since mid-July, as the Financial Times noted in a story about its...
Read More »Bond Selloff Returns As EM Fears Rise; Oil Slides; BOJ Does Not Intervene
U.S. index futures point slightly lower open. Asian shares rose while stocks in Europe fell as energy producers got caught in a downdraft in oil prices and reversed an earlier gain after Goldman unexpectedly warned that WTI could slide below $40 absent "show and awe" from OPEC. The dollar rose, hitting a four-month high against the yen and bonds and top emerging market currencies were back under pressure on Tuesday, following last week’s hawkish rhetoric from central bankers. Nonetheless,...
Read More »Burkhard Varnholt: “Internet has killed inflation”
Why is inflation so low and what is driving the stock market? Find out here. The world economy is growing and stock markets are rising ever higher. However, inflation and capital market yields remain low. Burkhard Varnholt, Global deputy chief investment officer at Credit Suisse, explains the...
Read More »Inflation. A Loyal Swiss Ally
Switzerland has been classified as one of the happiest countries in the world. Commonly stated reasons for this are the sense of community, beautiful landscapes, fresh air, and clean water. Not to mention prosperity. 'Switzerland: A Financial Market History', by the Credit Suisse Research Institute in partnership with leading experts from the London...
Read More »A Problem Emerges: Central Banks Injected A Record $1 Trillion In 2017… It’s Not Enough
Two weeks ago Bank of America caused a stir when it calculated that central banks (mostly the ECB & BoJ) have bought $1 trillion of financial assets just in the first four months of 2017, which amounts to $3.6 trillion annualized, “the largest CB buying on record.” Aggregate Balance Sheet Of Large Central Banks, 2000 - 2017 - Click to enlarge BofA’s Michael Hartnett noted that supersized central bank...
Read More »“Mystery” Central Bank Buyer Revealed, Goes On Q1 Buying Spree
In the first few months of the year, a trading desk rumor emerged that even as institutional traders dumped stocks and retail investors piled into ETFs, a “mystery” central bank was quietly bidding up risk assets by aggressively buying stocks. And no, it was not the BOJ: while the Japanese Central Bank’s interventions in the stock market are familiar to all by now, and as we reported last night on sessions when the “the...
Read More »Credit Suisse Yearbook 2017: Low Interest Rates Hit Returns on Equities
The risk premiums on equities are unlikely to be as high in the future as they have been. This is the conclusion reached by the 2017 Yearbook published by Credit Suisse. In order to make statements regarding future market developments, it is worth taking a look at the past. Therefore, in the latest...
Read More »Cautious First Steps in Further Development of Financial Markets
Asian countries have high savings rates, but investments are predominantly short-term. However, they have embarked on the path to longer investment horizons and deeper capital market integration. Asia's investment needs are enormous and will likely continue to grow over the coming years....
Read More »CS and UBS Tell Wealthy Retail Clients To Buy Stocks…”Here, Can You Please Hold This Bag”
Warren Buffett has frequently advised aspiring investors to take a contrarian view on markets and “be fearful when others are greedy and be greedy when others are fearful.” In fact, being dismissive of the wall street ‘herd mentality’ has resulted in some of Buffett’s most successful trades over the years including his decision to load up on bank stocks during the ‘great recession’. But the market wizards at Credit...
Read More »CS and UBS Tell Wealthy Retail Clients To Buy Stocks…”Here, Can You Please Hold This Bag”
Warren Buffett has frequently advised aspiring investors to take a contrarian view on markets and "be fearful when others are greedy and be greedy when others are fearful." In fact, being dismissive of the wall street 'herd mentality' has resulted in some of Buffett's most successful trades over the years including his decision to load up on bank stocks during the 'great recession'. But the market wizards at Credit Suisse and UBS are apparently advising their wealthy retail clients to...
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