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FERI (Schweiz)’s employees specialise in providing individual, comprehensive and long-term advice to discerning families. We provide solutions for the preservation and growth of family wealth – for this generation and the next. We offer strategic aset planning, advice on implementation, profitability monitoring, risk management, asset protection strategies and sustainability consulting.
FERI (Schweiz) offers clients a range of advisory services and individual investment solutions to give them clarity as to how compatible their investments are with the United Nations sustainable development goals and increase their understanding of this at the different levels of the investment process.
FERI (Schweiz) has a unique expertise in asset management and advisory services for discerning clients. The sustainable quality concept is based on the quality investing approach, in which financially sound companies are identified through targeted selection on the basis of various quality characteristics.
Artificial intelligence (AI), the Internet of Things (IoT) and 5G – exponential technologies will trigger a wave of transformation in society and the environment in the coming decades. FERI (Schweiz) offers the opportunity to actively participate in these developments and to invest in an innovative concept.
FERI (Schweiz) offers its clients customised solutions and individual investment strategies. Our particular strength lies in mandates with special risk-return targets, which we define individually with our clients.
FERI (Schweiz) offers clients a range of advisory services and individual investment solutions to give them clarity as to how compatible their investments are with the United Nations Sustainable Development Goals (SDG) and increase their understanding of this at the different levels of the investment process.
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Markets Update July 2022 – Investment environment remains fragile and risky

Bad Homburg, 7/18/2022
by Dr. Eduard Baitinger
  • Despite slight easing, overriding negative trend continues
  • Turnaround unlikely in the near future
  • Strong US dollar endangers stock markets

Despite the slight easing in equity markets, the overarching investment environment remains fragile and risky. New corona lockdowns loom in China, an energy crisis is increasingly likely in Europe, purchasing power is suffering from inflation and global monetary tightening is increasingly coming through in the "hard" macro data.

Global equity markets are in an overarching negative trend with an almost picture-perfect trend erosion: positive counter-movements cannot compensate for previous losses. So far this year, the markets have systematically seen lower lows and lower intermediate highs. With such trend patterns, further losses are more likely than a sustained stabilisation or countermovement.

When a sustainable turnaround begins depends on various factors:

In the optimistic, but rather unlikely scenario, the central banks manage to sustainably curb inflation and at the same time ensure a "soft landing" of the global economy. Corporate profits stabilise and the tight monetary policy is moderately eased. In this scenario, the current price levels in both equity and bond markets would offer an attractive buying opportunity.

However, a "normal" recession is much more plausible, as the real economy is already noticeably slowed down by monetary tightening. The inflation forecasts do not permit any easing. In this scenario, a turnaround on the markets is unlikely in the near future; at least another wave of selling off would have to be expected.

In a worst-case scenario, a severe global recession could even loom, caused by strong economic imbalances. Triggers could be global corporate and sovereign debt or the inflated Chinese real estate market. In this scenario, the negative trend on the stock markets would continue at least until the end of the year.

Strong US dollar endangers stock markets

The US Federal Reserve gives high priority to fighting inflation. With its rigorous tightening course, it is driving the rapid appreciation of the dollar. However, the strong US currency is also a symptom of the crisis-ridden global economy and increased geopolitical uncertainty. In such times, the dollar is in demand as a safe haven. However, its strength is becoming a strong risk factor for global stock markets. This is because these are dominated by multinational US companies that generate a large part of their revenues abroad and are therefore sensitively affected by the appreciation. Moreover, the US dollar is the world's most important debt currency, and the current development increases the burden on local debtors in their respective currencies.

In the short to medium term, the US dollar should remain strong. In the long term, however, it should show weakness again due to the clear overvaluation. Against this background, global investors with high dollar exposure should be more agile in their currency management.


About Dr. Eduard Baitinger

Dr. Eduard Baitinger has been Head of Asset Allocation in the FERI Group since 2015. He is responsible for quantitative asset allocation at FERI Trust, where he also manages and coordinates numerous research projects. In close coordination with the FERI Board of Directors and Chief Investment Officer, Dr. Heinz-Werner Rapp, he also represents the investment strategy of the FERI Group and its communication to clients and customers of FERI.

Before joining FERI, he was a research assistant at the University of Bremen and financial analyst for an asset manager. In 2010 he completed his studies at the University of Bremen, accompanied by a stay abroad in New York, as a graduate economist. In 2014, Eduard Baitinger received his doctorate with distinction on new approaches to quantitative asset management. Dr. Baitinger publishes regularly in academic journals and acts as academic reviewer.

About FERI

Founded in 1987 and headquartered in Bad Homburg, Germany, the FERI Group has developed into one of the leading investment houses in the German-speaking area. FERI offers tailor-made solutions for institutional investors, family assets and trusts in the following areas:

The FERI Cognitive Finance Institute was formed in 2016. It is the strategic research centre and creative think tank of the FERI Group. The Institute focuses on innovative analyses and the development of methods for long-term oriented economic and capital market research. 

FERI and MLP currently manage assets of about EUR 56.6 billion in the Group, including EUR 15.4 billion in alternative investments. The FERI Group is headquartered in Bad Homburg and has locations in Dusseldorf, Hamburg, Luxembourg, Munich, Vienna and Zurich.



Media relations contact

Katja Liese

Member of the Management Board

Head of Press & Communications

T +49 (0) 6172 916-3192

F +49 (0) 6172 916-1192

presse@feri.de

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