Switzerland retains $93.28 of every $100 from 2019.
The OECD gap tells a wider inflation story. E.g, the value left from a $100 budget stands at $77.16 in the U.S. In Turkey, you would have $10.93 left... Source: OECD cumulative inflation data, December 2019 to April 2026 Antony Martini
The Swiss National Bank reported a solid six-month profit, as gains from the global stock-market rally and a weaker franc offset the drop in value of its gold holdings.
The SNB earned 25.2 billion francs ($31.2 billion) from January through June, it said in a statement on Friday. That brings a year-end payout to the Swiss government back into focus after the first quarter resulted in a small loss. Source: Bloomberg
Switzerland isn't running out of buyers. It's running out of homes.
The national vacancy rate has fallen to just 1.0%, marking the fifth straight annual decline. In prime markets such as Zurich, Geneva, Vaud, and Zug, vacancy is below 0.5%. This isn't a typical property cycle. It's a structural shortage. Strict planning rules severely limit new construction, while population growth continues to fuel demand. Only 48,455 homes remain vacant across the entire country. For foreign buyers, the market is even more restricted. Under Lex Koller, many of Switzerland's most desirable residential areas remain largely off-limits to non-residents. The biggest constraint isn't affordability. It's access. In one of the world's tightest housing markets, owning the right to buy may be more valuable than the property itself. Source: Rémi Berthon Swisseon Swiss Federal Statistical Office / The Luxury Playbook
UBS’s balance sheet is bigger than Switzerland’s economy.
Source: @financialtimes
Swiss National Bank Signals Aggressive Currency Intervention
Amid global uncertainty, the Swiss franc surges, pressuring exports and keeping inflation at 0.1%. The SNB plans aggressive intervention: selling francs and buying foreign currencies to weaken the franc. This may trigger U.S. tensions due to past manipulation accusations and tariffs. Switzerland faces a dilemma: protect its economy or avoid political backlash, highlighting how central banks now navigate inflation, geopolitics, trade wars, and market psychology. Source: CNBC
It looks like negative interest rates are returning to Switzerland...
Government bonds with maturities of up to 4 years are now yielding negative returns. Source: HolgerZ, Bloomberg
While the world watches the US Dollar and Yen with bated breath, the "Swissie" just hit its strongest level in over a decade.
Here is why the global markets are shaking: 🚀 The "Gold Nugget" Effect Investors are fleeing to safety. With Gold crossing $5,000/oz and political volatility rocking major powers, the Swiss Franc has become the ultimate "reliable" haven. It’s up 3% this year, following a massive 14% gain last year. 📉 The SNB's Impossible Choice A currency this strong is a double-edged sword. It keeps inflation low (currently at 0.1%), but it puts a massive squeeze on Swiss exporters. The Swiss National Bank (SNB) is now stuck between a rock and a hard place: Cut rates? They are already at 0%. Going negative again is a move they want to avoid. Intervene? Direct intervention risks the "currency manipulator" label and diplomatic friction. 🌍 The Bigger Picture When the "linchpin" of the global economy (the USD) feels erratic, capital doesn't just disappear—it migrates. We are seeing a fundamental shift in where the world stores The Lesson: In a world of volatility, stability is the most expensive luxury on the market. Source: FT
Although the Swiss Franc has been the strongest currency in the world, the purchasing power degradation in ‘real’/’hard’/gold terms over the last 20 years has been massive
Chart below shows Gold price in Swiss Francs – the “hardest” fiat currency in the world has lost 80%+ of its purchasing power !) Source: Goldman Sachs, zerohedge
