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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.

The central banks once again proved to be the key market drivers in the second quarter. The Swiss National Bank set the tone and surprised the world by cutting interest rates in March, and then again in June. The European Central Bank is keen to demonstrate its independence from the Fed and also risked a cut in June.

Gold is seen as a safe haven in times of uncertainty. Read our blog post to find out more about how the gold price has performed and the factors that affect it.

As a global market leader in generics and biosimilars, Sandoz benefits more than average from rising patent expiries. The first annual financial statements as an independent company released in mid-March showed that the high-margin biosimilars business in particular is growing strongly (+15%). The company is looking to expand this division. Total revenue was up 7% in 2023, but the margin fell to 18% due to one-off costs from the spin-off, amongst other things. Financial analysts were originally looking for a target of CHF 40, but the stock price has moved sideways around the CHF 25 level since the IPO on 4 October 2023. Given the forecast revenue growth of 5% and margins that should hit 20%, a price/earnings ratio of 11 is far too low.

The first quarter is already behind us and performance was positive. Artificial intelligence remained a focus of attention and was one of the main drivers of the positive return from financial markets. According to a study published recently, the number of companies mentioning AI in their financial reports has reached a new record: 36%.

The Swatch share is at the same price level as in the year 2000, even though the company has more than doubled its turnover and profit during this time. The weak share price can be attributed to the vague corporate strategy, a lack of vision and poor communication with shareholders and financial analysts.

2023 was a challenging year for stock markets. Ultimately it drew to a positive end, but along the way it showed us the increasing importance of good risk management. 2024 too has risks investors should not underestimate. There is no end in sight to the wars in Ukraine and the Middle East, and the tensions in the Far East are also unlikely to ease. On top of that, some countries are facing elections which could have consequences beyond national borders or even for the whole world.

ESG is becoming an increasingly prominent issue for private clients, and for younger ones in particular sustainable investing is essential. Even more attention will be focused on the issue from 1 January 2024, when the mandatory minimum investment standards of the Swiss Bankers Association come into effect.

from the collapse in demand for COVID tests. Even so, it grew 7% in the third quarter and reported double-digit growth rates in the high-margin pharma division for the first time in years. Patent expires on the three big cancer drugs (Avastin, Herceptin and Rituxan) are becoming less significant, as are the COVID tests, and from 2024 onwards Roche will be back on track for double-digit growth.

In the fast-paced world of real estate investing, 2023 has brought forth a myriad of challenges for investors. From soaring inflation rates to the collapse of prominent banks (such as SVB) and ongoing geopolitical tensions, the real estate market has been significantly impacted. However, amidst these challenges lie hidden opportunities for those willing to navigate the stormy waters of the industry.

The Swiss economy stagnated in the second quarter. However, the labour market remained strong, which had a positive impact on private consumption. The data published suggest that the Swiss economy is becoming less resilient. The problems encountered by Germany, Switzerland’s largest trading partner, are becoming increasingly evident. Meanwhile, the weakness of China is weighing on industrial exports. This suggests that the slowdown in global growth appears to have reached Switzerland.