Many investors are asking themselves why markets are going up when unemployment is high. The short answer is that equity markets look ahead. Unemployment is a late indicator of the economic cycle, whereas early indicators are already pointing to an improvement. Furthermore, the economic stimulus injected by central banks has recently been ramped up dramatically to new levels. In particular, the European Central Bank (ECB) has expanded its asset purchase programme  from EUR 750 bn to EUR 1,350 bn. This is boosting both equities and the Eurozone’s economy. 

The global economy may be having a tough year, but equity markets have calmed and are trending upwards. The dramatic further opening of the monetary floodgates by central banks and governments is creating a wave of liquidity that can flow into the real economy and/or the financial markets. Both of these things are likely to happen. Swiss equities and the Swiss franc have always been a byword for stability and historically attractive growth.

The turbulent performance of Bitcoin over the last year has brought this cryptocurrency to the attention of the wider public. But this currency has actually been around for almost ten years, and an estimated 1,600 other alternative currencies have also sprung up in the meantime. The question is often asked whether these constructs – which only exist in the form of digital code – can really be considered currencies at all in a way that bears comparison with the dollar, euro or yen. We will return to this question later in this article. First of all it is worth establishing what actually lies behind cryptocurrencies such as Bitcoin, Ether and Ripple.