Investment policy in the light of the current economic situation

The financial markets are currently undergoing a period of significant challenges. A combination of geopolitical tensions, persistent inflationary dynamics and growing economic risks has led to noticeable nervousness. In this situation, it is particularly important to act prudently – but also to pursue a structured and long-term approach.

Since US President Donald Trump announced the introduction of high tariffs on imports, global equity markets have undergone a significant correction. These sudden and sharp moves emphasise the high sensitivity of global financial markets to geopolitical and trade policy developments.

The increase in import tariffs presents companies with a choice: either they pass on the higher costs to consumers, which could fuel inflation, or they accept lower profit margins, which would result in a downward revision of corporate earnings. Either way, it creates uncertainty in the financial markets.

We are monitoring market developments very closely. Since last week, we have held several internal meetings to analyse the current situation in detail and discuss the implications for portfolio positioning. Our aim is to respond to the changing conditions with caution and a clear strategy.

The signs of an economic slowdown are becoming more pronounced. Leading indicators and company reports suggest that the pace of global growth is slowing.

Equity market valuations have fallen significantly in recent weeks. Expectations for future corporate earnings are also being assessed with increasing caution. On the interest rate side, there are increasing signs that a turning point may have been reached - with corresponding effects on currencies and risky asset classes.
 

We are convinced that in times of heightened uncertainty, prudence and discipline are more important than hasty adjustments. We are constantly monitoring market developments and - if certain scenarios are confirmed - we will review and implement further, well-considered measures.

Contact a client advisor for more information.

_{This publication is intended for information and marketing purposes only, and is not geared to the conclusion of a contract. It only contains the market and investment commentaries of Maerki Baumann & Co. AG and an assessment of selected financial instruments. Consequently, this publication does not constitute investment advice or a specific individual investment recommendation, and is not an offer for the purchase or sale of investment instruments. The future performance of investments cannot be inferred from past price performance. In other words, the value of investments may increase but may also decrease, and the investor may be required to make additional payments for certain products. In certain circumstances, figures may refer to reporting periods of less than five years, which could reduce their validity. Predictions for the future are always non-binding assumptions. Figures presented in foreign currencies are also subject to exchange rate fluctuations, which can affect their performance. The information in this publication is in no way to be understood as an assurance of future performance. Maerki Baumann & Co. AG does not provide legal or tax advice. In addition, Maerki Baumann & Co. AG accepts no liability whatsoever for the content of this document; in particular, it does not accept any liability for losses of any kind, whether direct, indirect or incidental, which may be incurred as a result of using the information contained in this document and/or arising from the risks inherent in the financial markets.}

Editorial deadline: 8 April 2025

Maerki Baumann & Co. AG
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T +41 44 286 25 25, info@maerki-baumann.ch
www.maerki-baumann.ch