Switzerland

Here is a chart of the relative performance of various asset classes over the past year. One asset class outperforms the others… by a wide margin.

Morning dominated by SNB’s decision to target EUR/CHF at 1.20; European stocks marginally higher. German August orders slumped -2.8%, first drop since March; US service-sector ISM key report today. In the EM space, China's economic growth…

This has been an extremely tumultuous week throughout the capital and commodity markets. August itself has been a cruel month. The German stock market has lost around a quarter of its value. A marked slow down in the US and Europe in Q2 has…

The yen is a safe haven. That assertion seems so obvious, that why it is the case is rarely explored. It does not seem to be a function, as some suggest, of its trade surplus, but rather its position as a net international investment…

Markets stable but tone remains fragile. SNB expanded its sight deposit target; no EUR/CHF peg. BoE’s decision to stay on hold was unanimous. New measures announced by China boost CNY internationalization and integration with HK.

In characteristic form, the currency traders and those who trade in what is dubbed "financial news" woke up last week and discovered, à la Rip Van Winkle, that the Swiss franc was a haven currency charging higher. Never you mind that it has…

The first is the size of the ECB bond purchases. Second, the Franco-German summit tomorrow attracts attention. Third, the market continues to pare long Swiss franc positions with the local press suggesting the SNB and government may take…

The past two weeks have seen large disruptions in the global capital markets and various policy responses. Market participants are having a difficult time getting a handle on these developments. There are three things investors should…

US growth concerns and downgrade risk remain in play after budget deal. Euro zone periphery remains under pressure as ECB meets Thursday. SNB takes action against strong CHF; spike in EUR/CHF offers good entry point to go long CHF.

It is difficult for companies to cope with the competitive implications of the persistent strength of the Swiss franc. By the OECD calculations, the Swiss franc is the most over-valued currency in its universe near 45% over -valued against…