Investment compass – March 2020

The monthly newsletter includes a topical editorial, our positioning including the conclusions from the analyses, a market overview of the most important asset classes, an assessment of the current economic situation in various regions, and our current model portfolios.

The impact of coronavirus

Coronavirus has hit us with full force. The extent of the economic repercussions for the global economy are hard to predict at this stage. We continue to adopt a cautious position.

Positioning

Lower prices do not yet present an opportunity to buy

We are continuing to focus on risk reduction in our portfolios. Until the extent of the impact of the measures can be better assessed, we advise our customers not to view the stock market slump of recent weeks as an opportunity to buy.

The coronavirus developments will cause far-reaching economic problems.

Market overview

Coronavirus plunges the markets into turmoil

Although the financial markets paid little attention to the coronavirus outbreak for some time, there has been a huge change recently. Volatility has increased sharply. Equity prices have suffered historic slumps and US bond yields have hit new lows.

Economy

The risk of recession grows

The coronavirus outbreak has brought the growing optimism at the start of the year to an abrupt halt. The latest news means it seems increasingly likely that there will not just be a short-term economic slump, but instead a global recession.

Model portfolios

Reduced risk still advised

The full extent of the economic repercussions of coronavirus will only become apparent over the coming weeks and months.

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Investment compass

Information relevant to your investment decisions. The “PostFinance house view”, complete with our position on and assessment of the financial markets and the overall economic situation.

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For independent investment decisions: concise, crystal-clear information on the financial markets and the overall economic situation.

The newsletter is aimed at customers domiciled in Switzerland. The legal information and information on the protection of personal privacy apply.