Sensual Economics: Unveiling Financial Markets, Ideologies, and Seductive Misconceptions

Good Morning Ladies and Gentlemen

”The level of immaturity is beyond words.”

Sen. Rand Paul

A Deeper Look at Wealth / Part I: A Philosophical Approach to Wealth

I sincerely appreciate your thoughtful messages and generous compliments regarding last week’s “Stefan’s Weekly.” I shared your feedback with Anton, who was truly honoured by your kind words.
@ Adrian: During the summer, you will receive responses to your inquiries.
Thank you, Ladies and Gentlemen, once again!

The Swiss National Bank

The Swiss National Bank (SNB) has reduced its key interest rate by 0.25 percentage points, bringing it to 0%. This decision is a response to the uncertain economic landscape, the strong Swiss franc, and the persistently low inflation rate, which dipped slightly into negative territory in May. The appreciation of the Swiss Franc is a burden on exports, tourism, and, among others, Swiss pension schemes.

Federal Reserve / Sensual Economics

On Wednesday, the Federal Reserve signalled its intention to adopt a wait-and-see approach regarding future developments. Chair Jerome Powell and his colleagues in monetary policy decided to maintain interest rates within a range of 4.25% to 4.5% for the fourth consecutive meeting, citing a high level of uncertainty surrounding the economic outlook, though noting that it has lessened somewhat. Additionally, officials revised their projections for economic growth this year downward, while simultaneously raising their forecasts for unemployment and inflation.
The pivotal excerpt from the remarks made by Powell that contributed to the subsequent elevation in bond yields was the following:”Ultimately, the cost of the tariff must be paid, and some of it will be passed on to the end consumer. We know that’s coming, and we want to see a little bit of that before we make judgments prematurely.”
Ladies and Gentlemen, this perspective makes a lot of sense to me! The Federal Reserve maintains its independence and does not yield to political pressure, while it appears to be taking its mandate very seriously.

Crude Oil

The interplay between geopolitical conflicts and fluctuations in food prices may significantly intensify economic pressures faced by Federal Reserve Chair Jerome Powell during the summer months. An increase in oil prices is also indeed correlated with elevated inflationary expectations within the economy.

Political Views and Seductive Misconceptions in the Markets

Finally, I often receive emails from readers seeking clarification on my political views. At my core, I am a freedom-loving individual who supports a limited role for the state. However, I strive to remain open-minded and avoid rigid ideologies, as my primary focus is as an asset manager. My main objective is to identify opportunities within the financial markets. Over the years, I have come to recognise that some of the most lucrative deals arise when widespread beliefs are based on seductive misconceptions or ideologies.

Ladies and Gentlemen

Feel free to send your messages to smk@incrementum.li

Many thanks, indeed!

I wish you an excellent start to the day and weekend!

Yours truly,

Stefan M. Kremeth
CEO & Head of Wealth Management
Incrementum AG – we love managing assets

Tel.: +423 237 26 60
Cell: +41 79 303 48 39
Im alten Riet 153
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li