Bond Outlook September 3rd

Are we living in an economic oasis in Switzerland? While all around, economies are slowing, house prices falling, consumer prices rising, Switzerland is enjoying low unemployment and inflation, and steady expansion. In many ways the country is bursting at the seams, with multi-nationals moving into “Romandie”, and German nationals moving into the Zurich area. There is an acute shortage of housing. When last time (beginning end 1989) housing prices collapsed elsewhere in Europe, Switzerland went through the same thing, but this time things look different (always a dangerous utterance!).