Financial analysts are still pessimistic
Although the Swiss economy was somewhat stronger in May than it has been in the past few months, the majority of financial analysts are not so optimistic.
The CS-CFA index released on Wednesday rose only slightly in May to -32.2 from -33.3 previously. In March, the index fell to -41.3 points as a result of unrest in the banking sector.
With May declining, a gauge of Swiss financial analysts’ mood is now below zero for the 15th consecutive month and has thus been signaling an economic downturn for more than a year. According to experts, the economic prospects of the United States and Europe have remained more or less flat. Only for China did analysts sound significantly more pessimistic.
Strong location, expensive real estate
Meanwhile, high interest rates are slowly making their mark. According to the analysts surveyed, real estate valuations are too high in light of rising interest rates and the resulting lower earnings expectations. This applies to both residential real estate and real estate funds. Meanwhile, the majority consider other asset classes such as stocks or gold to be of fair value.
The possibility of interest rate cuts decreases
Meanwhile, inflation expectations have changed little. The consensus in the US is that inflation will fall. Although the majority expects this also for Switzerland and the eurozone, about a third of respondents expect inflation to remain at a level that is still very high.
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