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Combining Investments, Industry News and a Swiss Perspective

Resources about Offshore Banking

Market Optimism vs. Economic Realities: Finding Balance Thumbnail

Market Optimism vs. Economic Realities: Finding Balance

Explore the intricate dance between global elections, economic dynamics, and investment strategies that shape today's financial landscape. From the anticipation of elections worldwide to the implementation of global minimum tax rates, we dissect key trends driving markets forward. Gain valuable perspectives on how indices like the S&P 500 and Nasdaq 100 continue to rally, fueled by tech giants and economic optimism. However, amidst the celebration, we caution against complacency, highlighting potential risks such as China's deflationary environment and challenges in the commercial real estate sector. Delve into the inflationary pressures influencing fixed-income investments and the shifting fortunes of precious metals like gold.

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What Is Systemic Risk?  Thumbnail

What Is Systemic Risk?

We delve into the intricacies of financial market investing, emphasizing the balance between risk and reward. While diversification is highlighted for mitigating risks, the piece recognizes the persistence of systemic risk. We discuss the impact of systemic risk on investors, introducing the concept of a risk premium. It stresses the need for full diversification across assets, sectors, geographies, and currencies to navigate systemic risk and build resilient portfolios.

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G7 vs. BRICS and the Influence of the USD Thumbnail

G7 vs. BRICS and the Influence of the USD

The comparison of GDP between BRICS and the G7 underscores the rising economic influence of BRICS, now representing over $30 trillion or about 29% of the global GDP. Although BRICS falls short of the G7's 43% global GDP share, the addition of new members and the robust growth rates of major BRICS nations, particularly India, suggest a narrowing gap in the future. Let's dive into what this development means for the US Dollar.

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The Swiss View: Embracing the Unknown in 2024 Thumbnail

The Swiss View: Embracing the Unknown in 2024

In the wake of global conflict and unexpected theaters of war, the world's economic stage defies expectations. As Europe and the Middle East become battlegrounds, the anticipated recession fails to materialize, leaving experts confounded amidst a prolonged pre-recession era. Despite localized economic downturns, the United States, in an unexpected turn, sidesteps a significant slump. Yet, uncertainty shrouds the horizon - whispers of a potential soft landing clash with the looming specter of a recession. Even seasoned economists struggle to navigate this unprecedented terrain, grappling with the unparalleled combination of COVID upheavals, monumental fiscal stimuli, and the mounting debt. The cost of such vast spending hangs ominously, leaving the world wondering who will bear the burden and when the reckoning will arrive.

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What is The Fed, and What Do They Do? Thumbnail

What is The Fed, and What Do They Do?

Ever wondered about "the Fed" and its real significance in your life? Step into the world of the Federal Reserve System, where decisions made behind closed doors can directly affect your finances. From interest rates to economic stability, explore how this powerhouse institution shapes your everyday financial landscape. Plus, meet its Swiss counterpart and discover the intriguing differences in their approaches to maintaining stability in their respective economies.

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The Swiss View: Will the last one break too?! Thumbnail

The Swiss View: Will the last one break too?!

Amidst global economic shifts and geopolitical tensions, the investment landscape remains turbulent. Recent events, including geopolitical conflicts in the Middle East, indicate a prolonged period of instability challenging the prospects of a swift return to normalcy. As economic indicators hint at a slowdown, investors grapple with decisions amid rising interest rates and employment shifts among major corporations. The volatility has led to cautious investor sentiments, evident in low market volumes and heightened reactions to companies falling short of expectations. Notably, recent developments, such as Moody's revision of the US credit outlook, signal potential disruptions ahead. The narrative surrounding the economy's trajectory remains uncertain, prompting a call for a broader, long-term perspective in making prudent investment choices.

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The Swiss View: A New Beginning: Recession as a Launchpad Thumbnail

The Swiss View: A New Beginning: Recession as a Launchpad

In recent times, central banks in various jurisdictions have adopted a cautious approach by refraining from further increasing interest rates. However, they have been vocal about their intention to closely monitor the consequences of the steps taken thus far. Despite this pause in rate hikes, equity markets have started to experience turbulence, reflecting an adjustment to the prevailing economic realities. Our assessment suggests that economies are currently facing significant challenges.

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International Investment Opportunities During A Recession (Webinar) Thumbnail

International Investment Opportunities During A Recession (Webinar)

In this webinar, we will explore how Americans can position their investment portfolio in a recession and the opportunities presented to them outside of the U.S. markets and USD. We will give an in-depth view into how the Swiss banking system is set up, how it caters to clients, and how Americans can use it to build an internationally diversified portfolio away from the risk-ridden U.S. economy.

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Miller on the Money: What Does Really Matter?  Thumbnail

Miller on the Money: What Does Really Matter?

Managing Partner Urs Vrijhof-Droese was recently interviewed for a "Miller, on the Money" article to discuss the Fitch downgrading the US credit rating, the devaluation of the USD, and an outside prespective on what direction the U.S. economy is going. "From an outside perspective, it is surprising that such influential and educated people do not recognize (or admit) that the U.S. financial household is in trouble.” - Urs Vrijhof-Droese.

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The Swiss View: “It doesn’t really matter that much.” Thumbnail

The Swiss View: “It doesn’t really matter that much.”

The question is what to expect from the rest of the year. Is the halt in equity prices the start of a more volatile environment leading back to price levels seen last October? We believe so. The reason is that corporate profits will sink further. That leads to lower valuations, meaning lower stock prices. Financing costs are still on the rise. With increased interest rates, sticky core inflation, decreasing corporate profits, and weak consumer confidence, chances are that banks will become even more restrictive in giving out loans. This is not only an issue in the U.S. and Europe. Last week it was announced that Chinese banks’ lending plummeted to Rmb 345.9bn (USD 47.8bn) instead of the expected Rmb 800 bn. This is the lowest figure since 2009, even though the Chinese central bank lowered interest rates in June to boost consumer spending.

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USA & China Decoupling And A New World Reserve Currency? Thumbnail

USA & China Decoupling And A New World Reserve Currency?

In this podcast episode, the WHVP team sits down with Dr. Beat Habegger of Habegger Strategy to discuss geopolitical risks in the current climate. In addition, Dr. Habegger will answer questions pertaining to investors regarding geopolitical risks and how he sees the trends of the world moving. We hope you enjoy it!

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The Swiss View: Be Brave, Not Greedy! Thumbnail

The Swiss View: Be Brave, Not Greedy!

While this year indices look great, the economies do not. Investors are falling back into old habits, becoming too enthusiastic about positive signs such as decreasing inflation and ignoring threats such as the looming recession. As many experts, central bankers, and not at least the Bank of International Settlements are stressing, the last bit of the fight against inflation is the most challenging part. Therefore, everyone who thinks that inflation will continue to fall at the same pace as it did since the end of last year is either not showing a great understanding of how economies and monetary policy work or is just naïve. As shown in our previous publication, core inflation is moving very little at a very high level.

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Miller on the Money: The Worldwide Inflation Dilemma Thumbnail

Miller on the Money: The Worldwide Inflation Dilemma

Inflation is increasing prices and a fall in the purchasing value of money. Banks and governments make inflation sound complicated as it serves their interest. It’s a hidden tax. Government-created inflation weakens the value of the currency, our money buys less. As evidenced by the recent debt ceiling farce, politicians have no interest in fiscal sanity or balancing the budget. While many predict the demise of the dollar, and much of the world is assisting in the erosion of the USD as the world currency, there are other factors. Urs Vrijhof-Droese is the Managing Partner of WHVP, international asset managers. Urs, an expert in international banking is based in Zurich. I’m a WHVP client. His recent article, The Swiss View – Cash is King got my attention.

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The Swiss View: Cash is King Thumbnail

The Swiss View: Cash is King

Expecting a slowdown in economic growth will most likely lead to a reduction in corporate gains. So far, companies were able to pass on price increases in raw materials to their clients. Additionally, managers try to keep their profit margins by letting off employees and transform their production to more efficiency. Not everyone will be successful in this environment and will be able to keep the profit margin on a high level. However, there will be firms that find ways to become more price efficient or increase their product or service’s quality to a level which increases the consumers willingness to pay higher prices. Long story short, “Cash is King!”. Accordingly, it is crucial to look out for companies that generate a cash flow that enables them to run their business, invest for the future, and if the time is ripe to acquire one or the other company to either grow their market share or use synergies.

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The Receding Dependence on the U.S. Dollar Thumbnail

The Receding Dependence on the U.S. Dollar

The dominance of the USD in the global economy gives the USA a huge amount of power should another country go against the will of the U.S. or attack an ally of the country. Because of this, whether good or bad, it has caused some countries to view the dominance of the U.S. dollar as a threat to their sovereignty and independence. In this blog, we will look at some of the international movements away from the USD and how they may affect the dollar's value in the long term. Finally, it will conclude with what Americans can do to begin protecting their wealth's value in the face of a depreciating dollar.

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Miller on the Money: Are All Banks Going Broke? Thumbnail

Miller on the Money: Are All Banks Going Broke?

Managing Partner Urs Vrijhof-Droese was recently featured in the Miller on the Money article to discuss how the Swiss banking system is set up and how it runs. Shortly after the Fed bailed out the Silicon Valley bank depositors, Reuters reported that Credit Suisse failed: “ZURICH, March 20 (Reuters) – Credit Suisse and UBS could benefit from more than 260 billion Swiss francs ($280 billion) in state and central bank support, a third of the country’s gross domestic product, as part of their merger to buffer Switzerland against global financial turmoil. …. The deal,…involves…a pledge from the Swiss government to absorb up to 9 billion francs in potential losses from the takeover.”

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The Swiss View: Banks in Hot Water Thumbnail

The Swiss View: Banks in Hot Water

Many people are worried that we are back at the Great Financial Crisis. While we are convinced that history does not repeat itself, it often rhymes. The risks that result out of central banks rising interest rates in light-speed are not new. We believe that the decision of the central banks to raise interest rates has been the right one but that they clearly underestimated the inflation and thus started too late. However, not only was it a misjudgment of inflation rates, it was also a misjudgment that the Modern Monetary Theory could work. That is something we and many others have warned from repeatedly. After more than a decade of ultra-low interest rates, many market participants have forgotten how to behave in an environment of rising interest rates.

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Podcast: The U.S. Bank Crisis and Credit Suisse Thumbnail

Podcast: The U.S. Bank Crisis and Credit Suisse

On this podcast episode, the WHVP team sits down together to talk about the U.S. bank crisis and the merger between UBS and Credit Suisse. In addition, the podcast will cover the stability of the Swiss banking system and the differences between the U.S. and Swiss banking industries and systems, and what Americans can do to ensure they select the right banks to partner with. We hope you enjoy it!

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The Most Significant Bank Collapse Since 2008 Hits The U.S. Financial System Thumbnail

The Most Significant Bank Collapse Since 2008 Hits The U.S. Financial System

On Friday, March 10, the Silicon Valley Bank (SVB) collapsed after experiencing a classical bank run. Because of it, we are now confronted with a new collapse of the 16th biggest bank in the U.S... All of us need to understand how this has happened and learn about the banks we use. Further in this blog, we will explore the SVB collapse and the differences between banks in the U.S. and Switzerland. Finally, for individuals with personal wealth in banks, it will be informative about what Swiss banks can offer you amid uncertainty in the U.S. financial situation.

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