On icy roads

If you start to slide on icy roads, make sure you keep looking ahead to where you want to go. That was the advice my father gave me many years ago. I was reminded of it again in the first week of January as unusually snowy weather blanketed Zurich. But the slippery conditions have extended beyond the Swiss streets. Global markets have already served up an avalanche of events in 2015, from a plunging oil price and euro, to rallying government bonds, and a dramatic change in gears by the Swiss National Bank (SNB) that shifted the franc sharply higher.

At a glance

  • Global markets have served up an avalanche of events in 2015, from a plunging oil price and euro, to rallying government bonds, to the removal of the Swiss franc floor.
  • The diverging world brings into focus why maintaining a long-term and disciplined approach to investment is so important.
  • By following the key tenets of diversification, rebalancing, considered asset class selection, and hedging against currency risks, CIO portfolios were only marginally impacted by the recent turmoil.
  • We believe the underlying environment of low oil prices, low government bond yields, and improving economic growth should continue to provide a supportive backdrop for global equities.

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