Swiss equities and gold could be heading in different directions.
The substantial outperformance of US equities versus US Treasuries over the first quarter of 2024 has left many multi-asset managers and investors asking: what’s next?
In our opinion, two main risks exist at this stage for equity markets: first, after two higher than expected inflation reports in the US, it is important the normalisation of inflation towards the Federal Reserve’s target resumes. This is our base-case scenario and the market consensus.
The second risk factor is linked to the cycle of investment spending on generative artificial intelligence (AI) service capabilities. If the recent capital expenditure trend on AI were to show signs of slowing down, the market would find the perfect excuse for a correction.
It is worthwhile…
