The economic outlook for 2025 was cautiously optimistic, according to financial experts at a recent investment forum hosted by St. Galler Kantonalbank (SGKB).
Thomas Stucki, Head of the Investment Center at SGKB, presented five key theses regarding economic development, highlighting a trend of declining interest rates that could make equities more appealing than bonds. Stucki's analysis also pointed out the current strength of the US economy, with expectations for continued growth into 2025. On the other hand, the European market appears to be weakening, primarily due to challenges faced by major economies like France and Germany. However, Switzerland is projected to maintain a positive outlook, thanks to a robust tourism sector that compensates for slower industrial activity.
The forum also discussed promising investment opportunities for the upcoming year, with a significant focus on "hidden champions" - companies that dominate niche markets but remain relatively unknown to the general public. One example mentioned was Accelleron Industries, a manufacturer of turbochargers for large diesel engines that has adapted its products for renewable fuels, positioning itself favorably in an evolving energy landscape. The discussion emphasized the importance of identifying companies with strong market positions and innovative products, even if they are not in the limelight.
The forum also addressed the role of precious metals and cryptocurrencies in investment strategies. While gold is viewed as a safe haven during economic uncertainty, silver is considered less reliable due to its lack of stability. The experts also cautioned investors about the volatile nature of cryptocurrencies, particularly Bitcoin, despite its current popularity.
The underperformance of Stadler shares in the transportation sector was another topic of interest. The financial specialists noted that companies in this sector face challenges due to external factors such as geopolitical tensions, energy crises, and raw material shortages. This highlights the need for investors to adopt a long-term perspective when evaluating stocks in this sector.
The evening concluded with an opportunity for attendees to engage with the financial experts, seeking personalized advice and insights. The insights shared at the SGKB investment forum will undoubtedly be valuable for investors looking to make informed decisions in the dynamic economic environment of 2025.