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Central banks to the rescue

Dear reader
Announcements by key central banks indicating that they will support the economy with interest rates cuts, if needed, have made an impression on financial markets. Investor optimism has surged lately due to an easing of the US-China trade dispute. Even weak economic data are now considered positive because they increase the probability of further monetary policy measures. We have used rising equity and bond prices to selectively take profits and increase the defensive tilt in our portfolios. We see gold as an attractive alternative to cash. The risks to growth remain elevated, and it will likely take a great deal of patience until the hope for a fresh upswing becomes a reality towards the end of the year.
Yours faithfully
Philipp E. Bärtschi, CFA
Chief Investment Officer

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