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As a society, we are ill-prepared for the end of “politics is the solution.” It’s fun to be a politician when there’s plenty of tax revenues and borrowed money to distribute, and when the goodies get bipartisan support. An economy that’s expanding all household incomes more or less equally is fun, fun, fun for politicians because more household income generates more income tax revenues and more spending that generates...

The US dollar closed today above CAD1.3500 for the first time since January 2.  Despite the setback, the Canadian dollar is the strongest of the major currencies year-to-date with a little less than a one percent gain.  The yen, in second, has is up about 0.2% (~JPY109.50).  Among emerging market currencies,  the Mexican peso’s 2.6% gain puts it in in second place behind the Russian rouble’s 7.2% appreciation. It is a...

Swiss Franc The Euro has risen by 0.03% at 1.1215 EUR/CHF and USD/CHF, May 30(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: After significant moves in equities and interest rates, investors are taking a collective breath, waiting for fresh developments. A nervous calm has settled over the capital market. China, Japan, and Australian equities leaked lower, but...

The prospect of diminishing returns for classic, and previously highly effective, 60/40 portfolios (60% equities, 40% bonds) is leading to changes in strategic asset allocation. Efforts to improve prospects include identifying macroeconomic regimes to guide investments and refining how diversification is understood. Interest in endowment-style investing is also growing as private assets are incorporated into strategic...

In May 2018, the European Parliament found that it was incredibly popular. Commissioning what it calls the Eurobarameter survey, the EU’s governing body said that two-thirds of Europeans inside the bloc believed that membership had benefited their own countries. It was the highest showing since 1983. Voters in May 2019 don’t appear to have agreed with last year’s survey. For the first time since 1979, Social Democrats...

(Keystone / Jean-christophe Bott) In a comparison of European solar and wind power generation, Switzerland ranks near the bottom. Per year and inhabitant, Switzerland produces 250 kilowatt hours of solar (236kWh) and wind (14kWh) power – the amount needed to power a dishwasher, roughly. This puts Switzerland in 25th place when compared with the 28 European Union nations, according to a study published by the Swiss...

Swiss Franc The Euro has fallen by 0.20% at 1.1222 EUR/CHF and USD/CHF, May 29(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The slump in equities continues after the poor showing in the US yesterday. Nearly all bourses in Asia Pacific and Europe are lower. Indonesia is the notable exception as domestic operators re-position after the election. Foreign investors...

In order to benefit from the free internet service on the trains, travellers must have a mobile phone, download the “FreeSurf SBB” application and have a Swiss SIM card from Salt or Sunrise. - Click to enlarge The Swiss Federal Railways has started testing free mobile internet based on 3G/4G coverage on the main train routes. However, it does not cover all Swiss operators. The state-owned company has started testing...

Switzerland’s GDP rose by 0.6% in the 1st quarter of 2019. Growth was driven primarily by increasing domestic demand. Foreign trade also provided positive impetus. Value added grew in most sectors. Switzerland Gross Domestic Product (GDP) QoQ, Q1 2019(see more posts on Switzerland Gross Domestic Product, ) Source: investing.com - Click to enlarge Switzerland’s GDP rose by 0.6% in the 1st quarter of 2019, after...

That nothing is truly “free” will be another lesson of the S-Curve. I often refer to the S-Curve because Nature so often tracks this curve of ignition, rapid expansion, stagnation and decline. One lesson of the S-Curve is that the human bias to keep doing more of what worked so well in the past leads to doing more of what failed even as results turn negative. The dynamic in play is diminishing returns: the yield on the...