SERIOUS THREATS LOOM OVER SWISS STOCKS 3/3

12 Sep

SERIOUS THREATS LOOM OVER SWISS STOCKS 3/3

Our outlook for Swiss bonds has shifted to a cautious stance. While we have lowered our target for short-term rates, which could potentially push long-term yields below zero again, the prospects for capital gains are constrained. We believe that the current environment does not present a favorable risk-reward profile, and we therefore recommend maintaining an underweight exposure to Swiss bonds.

Key Points

  • Moderate growth in Q2 confirms expected slowdown
  • High risk of stagnation in Q4 Leading indicators more nuanced and mixed
  • CPI and PPI indices settle into deflation
  • The SNB must act by lowering its rates by 50 basis points
  • The franc benefits from a unique context
  • Swiss bonds offer no prospects
  • Serious threats weigh on Swiss equities