Chart of the week: Switzerland the safe haven

Investors rattled by the prospect of a global slowdown and a worsening trade war are heading for Switzerland; the local stockmarket index has just hit a new record.

951_COTW

Investors rattled by the prospect of a global slowdown and a worsening trade war are heading for Switzerland; the local stockmarket index has just hit a new record.

The politically stable country compares favourably to the shaky eurozone and increasingly fraught global geopolitical backdrop, while the index also boasts more stable, dividend-paying multinationals such as Nestl and Roche than other markets, as Bloomberg points out.

It also bodes well that the Swiss franc, along with the Japanese yen, is deemed a safe haven when the global economy is slowing. Indeed, according to a study by JP Morgan, the franc was the best-performing currency during the last four US interest-rate cutting cycles.

Viewpoint

Michael Klein, The Conversation

Recommended

Rob Arnott: Covid's hidden investment opportunities
Investment strategy

Rob Arnott: Covid's hidden investment opportunities

Merryn talks to Rob Arnott of Research Affiliates about some of the unexpected consequences of Covid and their opportunities for investors, plus the "…
24 Sep 2021
The Information Age is about to get interesting
Economy

The Information Age is about to get interesting

The IT revolution has been around for a while now, says Merryn Somerset Webb. But we're just getting to the good bit.
24 Sep 2021
Evergrande: Chinese property giant spooks global markets
China stockmarkets

Evergrande: Chinese property giant spooks global markets

Global markets fell this week as investors worried about the fate of Evergrande, China’s most indebted property developer, which is teetering on the b…
24 Sep 2021
Investing in football clubs: how you can profit from the beautiful game
Share tips

Investing in football clubs: how you can profit from the beautiful game

Football clubs may often be money pits for oligarchs, but they are also huge global brands, says John Chambers – and investors are now starting to rec…
24 Sep 2021

Most Popular

Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021