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.