Switzerland's economy barely grew in the second quarter, gaining 0.1 percent from the first, when adjusted for sporting events, according to a flash estimate. During the first three months of the year, it expanded 0.5 percent, although that was a downward revision from the 0.7 percent gain initially reported, showing the economy is losing momentum.

This preliminary report doesn't provide detailed data beyond indicating that Swiss industry was negative in the second quarter while services provided a boost.

With 39 percent tariffs imposed by the US in August, there is a risk of the economy contracting in the third quarter. There has been inventory accumulation by businesses ahead of the tariffs, which also likely helped to prevent a more negative reading. This was borne out by the June trade data which showed the trade surplus growing to 5.79 billion Swiss Francs from 4.01 billion in May, as chemical and pharmaceutical product exports bounced back. So far, this sector has been exempted from tariffs.

Swiss watch exports, another bellwether industry, fell in June and are unlikely to recover anytime soon absent a lower tariff rate.

Today's data gives further support for the Swiss National Bank cutting rates at its next meeting which would mean another phase of negative interest rates.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. There is no flash estimate and the first report is typically not issued until around sixty days after the end of the reference quarter. This has the advantage of limiting the size of any future revision and also accommodates the inclusion of the GDP expenditure components.

GDP is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Investors in the stock market like to see healthy economic growth because robust business activity translates to higher corporate profits. Bond investors are more highly sensitive to inflation and robust economic activity could potentially pave the road to inflation. By tracking economic data such as GDP, investors will know what the economic backdrop is for these markets and their portfolios.

The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.