For those who think the Swiss Franc is a good investment:
I'm swiss and I do think it is a good investment, but at the
moment the Swissie has gone too far too fast. The Swiss National
Bank thinks (like me) it's overvalued and is determined to
fight this overvaluation. In fact it has already acted yesterday as
you can see in a chart. The actual level of the Swiss Frank is a
huge threat to our economy and the SNB is determined to make
interventions again.
At current rates we have to pay for a simple Big Mac around 8 or
9 US$......
Posted by parkridge77 on 4th of Aug 2011 at 09:20 am
Zwyss- great input & thanks. Peter Schiff was on the
US financial media yest.- he manages Euro Pacific fund- solid- well
regarded- he emphasiszing the point that anyone holding the $
will be paying for the debt & bascially advised moving
move cash to other currencies- swiss france of course
one one-- but he said there are lots of them- including the
Canadian loonie- which I'll be looking at. Very intereted in your
updates on this from the Swis front line & thnx again !
How much do the Swiss import? If they import a lot like we
do in the US, then your strong currency will make the goods from
other countries cheaper. Also, shouldn't the cost of dollar
denominated commodities like oil be cheaper as well? Thanks
for your insight.
Zwyss is rite to the point..... The strong franc is really
having an impact in several swiss industries.
Also remember that the have quite a few exports (Financials,
watches, machinery, pharma,etc..) It already has hit into the swiss
banks, which report that strong CHF has hurts its profitability,
among other factors.
while the CHF is historically viewed as flight currency the YEN
only developed in recent times due to
the weakness of EUR and USD, limited volume of CHF available,
China vs. US economic war,
also, the US mainly invests in the YEN as CHF has history as a
gold backed currency (they dropped the recent gold backing in
1999/2000 vs. other counties in 1971)
the Japanese already intervened last night, the Swiss will
probably follow suite.
Switzerland already intervened yesterday and Politics and Swiss
National Bank (our FED, independant from politics (as far as
possible
)) are very concerned about the strenght
of the Swiss Franc.
Infact Switzerland is an export oriented nation and gets hurt by
a too strong Franc
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Swiss Franc
Posted by zwyss on 4th of Aug 2011 at 07:43 am
For those who think the Swiss Franc is a good investment:
I'm swiss and I do think it is a good investment, but at the moment the Swissie has gone too far too fast. The Swiss National Bank thinks (like me) it's overvalued and is determined to fight this overvaluation. In fact it has already acted yesterday as you can see in a chart. The actual level of the Swiss Frank is a huge threat to our economy and the SNB is determined to make interventions again.
At current rates we have to pay for a simple Big Mac around 8 or 9 US$......
Zyyss & swiss franc perspective- TY
Posted by parkridge77 on 4th of Aug 2011 at 09:20 am
Zwyss- great input & thanks. Peter Schiff was on the US financial media yest.- he manages Euro Pacific fund- solid- well regarded- he emphasiszing the point that anyone holding the $ will be paying for the debt & bascially advised moving move cash to other currencies- swiss france of course one one-- but he said there are lots of them- including the Canadian loonie- which I'll be looking at. Very intereted in your updates on this from the Swis front line & thnx again !
How much do the Swiss
Posted by oops1e on 4th of Aug 2011 at 08:13 am
How much do the Swiss import? If they import a lot like we do in the US, then your strong currency will make the goods from other countries cheaper. Also, shouldn't the cost of dollar denominated commodities like oil be cheaper as well? Thanks for your insight.
Zwyss is rite to the
Posted by dpack on 4th of Aug 2011 at 10:28 am
Zwyss is rite to the point..... The strong franc is really having an impact in several swiss industries.
Also remember that the have quite a few exports (Financials, watches, machinery, pharma,etc..) It already has hit into the swiss banks, which report that strong CHF has hurts its profitability, among other factors.
Flight Currency
Posted by tgronbach on 4th of Aug 2011 at 08:45 am
have similar problems
while the CHF is historically viewed as flight currency the YEN only developed in recent times due to
the weakness of EUR and USD, limited volume of CHF available, China vs. US economic war,
also, the US mainly invests in the YEN as CHF has history as a gold backed currency (they dropped the recent gold backing in 1999/2000 vs. other counties in 1971)
the Japanese already intervened last night, the Swiss will probably follow suite.
The Swiss Central Bank has lost over $20B CHF intervening already...
Posted by lessarda on 4th of Aug 2011 at 10:55 am
and they preceded the Japanese by a day in new attempts by lowering interest rates to 0%. That Swiss trade may go down as one of the all-time worst.
Switzerland already intervened yesterday and
Posted by zwyss on 4th of Aug 2011 at 09:43 am
Switzerland already intervened yesterday and Politics and Swiss National Bank (our FED, independant from politics (as far as possible
)) are very concerned about the strenght
of the Swiss Franc.
Infact Switzerland is an export oriented nation and gets hurt by a too strong Franc