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.