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Every day the media report on «the political circus». In a world where geopolitical tensions and power games are everywhere, current international events are indeed reminiscent of a circus performance. For us as asset managers it’s a fascinating but chaotic spectacle, with performers from various countries displaying what they are capable of. Countries and decision makers are showing off their skills on the global stage like artistes in front of an audience. They are pursuing their own interests, but at the same time keeping an eye on what the others are up to.

Welcome to the fascinating world of Switzerland – a country known not just for its majestic Alps and delicious chocolate, but also for its bravery and its stability in turbulent times. While many central banks were acting cautiously last year, the Swiss National Bank stepped up, cutting interest rates at all four of its meetings. A bold and far-sighted decision that exemplifies a resolute approach to challenges.

Imagine the following scenario: the top decision makers at a central bank are sitting around the boardroom table in their suits wondering whether to press the magic interest rate button to stimulate the economy. The question they are asking themselves is something like this: “Should we be giving the economy a cup of regular coffee, or does it need a double espresso?” And when benchmark interest rates come down, hopes rise that companies and consumers will soon be spending happily once again and gross domestic product will go up.

Conventional wisdom has it that those who rely on yields and wish to sleep soundly buy bonds. This is only partially true, as was demonstrated clearly last year.

On 1 January 2023, Luca Carrozzo became the new Chief Investment Officer of Bank CIC, making him responsible for investment strategy. It’s time to take a look at the markets with him.