Connecting Insights—How serious is the risk of a recession?

Is a recession looming? Opinion seems divided. One thing we do know is that the current inflationary environment and Central Banks’ swift tightening action is a key factor contributing to a potential economic downturn. Historically, recessions have typically followed interest rate hikes in a bid to combat high inflation.

Is the current high inflation level and the associated risk of a recession unsettling you as an investor? In our livestream, Dan Scott, Head Multi Asset, and Reto Cueni, Chief Economist, present their thoughts on impacts and trends over the next months.

Inflation: Is currently high—and staying that way. What is driving it and what trends do we see going into next year?
Central Banks: For central banks it is a challenging time. How are they coping with the high levels of inflation? Should we expect further rate hikes? How do the actions of the Federal Reserve/ECB impact Switzerland and the Swiss franc?
Recession: Fear of recession is perceptible. Is it justified, or not? What is our main scenario for the US/Eurozone/Switzerland
Investing: How should investors be positioned in the current environment? Is it time to be looking at alternative investments?

Source: © Vontobel, July 05, 2022, 11:00 a.m.

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