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The Swiss View: 1st Quarter 2017
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The Swiss View

Dear Friends

We hope you have a beautiful and blissful spring!
Enclosed you will find our newsletter, The Swiss View, for your information.
Please do not hesitate to contact us, should you have any questions.
 
Yours faithfully,
WHVP Team

Topics in this issue:
  • General Thoughts
  • Interview by Dennis Miller
  • The Fed and the Interest Rates
  • The US Dollar
  • Precious Metals
  • Outlook and Conclusion

General Thoughts
Well, the year 2017 is only a few months old, but you will have to agree it has indeed been a very exciting and interesting year.
I am not only talking about the USA, although they have taken most of the news headlines.
President Trump did try to live up to the promises he made during his campaign and is still trying hard to fulfill them, which apparently is not as easy as he might have thought.
The Trumponomics did lead to a very sound stock market rally as well as to a very strong US Dollar. Will this last?
We will be giving you our opinion as to what we think might and could happen in the USA in this newsletter.
We will also highlight the current mood in Europe during this ever so important election year in France, as well as in our other neighbor country Germany.
We are sure, you will also find it interesting as to read our thoughts on interest rate cycles as well as inflation expectations.
As the Chines saying goes, we live in interesting times, and we at WHVP could not agree more. We are thankful that we are part of these historically important times.

Interview by Dennis Miller
We have, once again, been interviewed by our good friend Dennis Miller, who is writting for Miller on the Money. You can read the whole interview with Rob Vrijhof "Whats going to happen to the Value of the Dollar" here: Link to Article.

The Fed and the Interest Rates
So now we know, but do we really?  The interest rate increase of 0.25% on March 15th was widely expected by market participants.
The comments made by chairwoman Yellen, that this was only the beginning and that this will be followed by a streak of further increases in interest rates, remains to be seen.
President Trump, as of today, has not been able to implement any of his promises to accelerate stronger growth, infrastructure, lower taxes, building the wall etc. We will, therefore, have to be patient. Should the economy not develop as expected, we might see the expected increase in rates put on the back burner.

Strentgh or Weakness in the US Dollar
A very typical case of buy the rumors, sell the facts.
Before the announcement of the Fed regarding interest rates ,the US Dollar traded up sharply against major currencies we did see a lot of pressure especially on the Australian Dollar and Swiss Franc.
This strength evaporated into thin air a few minutes after the decision.
We are yet again seeing the Swiss Franc trading well below parity, which you, as our valued readers, know comes as no surprise to us.
We still believe there is a window of opportunity of taking advantage of the currently strong US Dollar to divest into foreign investments.
The current US administration is “not amused” as to where the US dollar is trading at this moment in time.
We strongly believe that we will be seeing a reversal of this current strength and that weakness will be seen before year end.

Quo Vadis Precious Metals
It currently does seem that we are being caught in a catch22 in precious metals; volatility is enormous, especially on Silver.
Having said this, it has all in all been a favorable year so far, Silver is showing gains of 14% and Gold 8% since January 1st.
We still believe that Gold, as well as Silver, will be putting in strong performances during the next few quarters.
Gold is currently trading at important chart technical levels, should these be taken out, we will see a quick move to the level of US$ 1300.--.
The same pattern is developing in Silver. Here a breach and prices above US$ 18.—would be viewed very positively.

Outlook and Conclusion
The elephant in the room is at the moment off course France, where we expect Mr. Macron and Madame le Pen to be in for a battle for the Presidency.
Mark April 23rd on your calendar. This date will give us a better understanding as to where France is heading.
It is our believe that the citizens of France are not as much against the EU and the Euro as we are currently made believe by the media.
Should Mr. Macron win these elections, we strongly feel that this would be positive for the EU as well as the Euro.
This event could, against all odds, even lead to a stronger Euro versus the US$ and we might not see parity on that pair, as has been talked about by market makers for a long period of time.

Therefore we still believe it is not unwise to take some money of the table and keep some powder dry.
Take advantage of the weakening US$ by diversifying into foreign investments, keep a close eye on the development of Precious Metals.
We do live in very interesting times and we at WHVP are here for you, should you have any questions as to how to get started, just call us or send us an email.

Our Founder and CEO Robert Vrijhof speaking at the Offshore Investment Summit in Punta del Este, Uruguay.
You can find Banyon Hill's review of his speach here: Link to Article.
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"Price is what you pay. Value is what you get." - Warren Buffet
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This is not an investment recommendation or a solicitation to become a client of the firm. Unless indicated, these views are the author's and may differ from those of the firm or others in the firm. We do not represent this is accurate or complete and we may not update this. Past performance is not indicative of future returns. For additional information and important disclosures, contact us [INT +41 44 315 7777 / US and CAN 01141 44 315 7777] or email us to info@whvp.ch . You should not use e-mail to request or authorize the investment in any security or instrument, or to effect any other transactions. We cannot guarantee that any such requests received via e-mail will be processed in a timely manner. This communication is solely for the addressee(s) and may contain confidential information. We do not waive confidentiality by miss-transmission. Contact us if you do not wish to receive these communications. This message is exclusively for the person addressed or their representative. Any form of the unauthorized use, publication, reproduction, copying or disclosure of the content of this message is not permitted. If you are not the intended recipient of this message and its contents, please notify the sender immediately and delete this message and all its attachments subsequently.






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