Proof-of-Work, proof-of-stake or proof-of-history? Consensus mechanisms are the backbone of every blockchain and ensure consensus in the network. In the world of digital assets, investors buy shares in network-based projects. They benefit from growth and can generate income through staking rewards, just like securities lending.

There are various definitions and forms of sustainable investing. Given the complexity of the market, it comes as no surprise that there is a sense of uncertainty among investors. The latest edition of our Finance Theme publication takes an in-depth look at this topic and provides guidance in navigating the intricate world of green investing.

Decentralised finance, or “DeFi” for short, is on everyone’s lips. While some expect the new decentralised financial system to replace the traditional industry logic, others believe it is nothing more than hype and will vanish again. Only time will tell whether DeFi actually becomes an alternative financial system. However, it is certainly worth looking into already.

The quest for assets that enjoy inherent protection against inflation is increasingly raising investor awareness of the world of digital assets (cryptocurrencies and tokens). For example, Bitcoin has recorded an impressive rise of around 500% since the stock markets hit bottom in March 2020 – and this already includes the sharp setback in May 2021. But: How will things play out over the remainder of this investment year?

The innovative blockchain technology (“distributed ledger technology”, DLT) and the associated expectations have already attracted a considerable amount of attention. For both private and institutional investors, however, it is still not easy to profit from the numerous possibilities of this young technology. In a market environment that remains fairly opaque, investors need to find their way around the many different providers and specialists while also overcoming the technical hurdles that exist in connection with blockchain technology. The specialists on our Crypto Desk are looking to shine a light in the darkness with this publication.

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.

Structured products are investment products that combine two or more financial instruments, of which one is often an option. The purpose of a structured product is to create a specific risk stance in a specific market situation. In addition, structured products can open up possibilities for investors in markets that cannot easily be accessed with other financial instruments. The suitability of a structured product as an investment will vary, as it will depend on the investor’s personal risk appetite, their market expectation, and the prevailing market situation.

We humans tend, when it comes to decisions under uncertainty, to exhibit a behavior which contradicts our long-held view of ourselves to be summarised as "homo oeconomicus". In our Investment Theme, we give an overview of the findings in the field of behavioral finance as to what are the typical errors of reasoning that "we irrational spirits" exhibit.

How do you value stocks, what are the different approaches and how are the implemented? We address these questions in our latest Investment Comment. In addition, we give an example in order to emphasize the importance of assumptions for a given equity valuation. Last, we offer our assessment of the current equity market valuation: Could it expand from here?

Rising vacancy rates for rental apartments and decreasing migration to Switzerland amid persistently brisk construction activity and an uncertain outlook for interest rates: the Swiss real estate market is continuing to experience a boom phase despite these negative factors impacting demand for real estate. The current issue of Investment Theme sheds light on the price developments in the Swiss real estate market in 2016 and offers advice as to what buyers and sellers of real estate should focus on in the current environment.