Swiss Franc for Investors Who Want to Play It Safe

Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said in a research note from Wednesday that there was an option that might be profitable for investors who wanted to play it safe.

– Considering the current uncertain background, we favor the Swiss franc as a safe choice haven in foreign exchange markets – he said.

– Switzerland is less affected by the European energy crisis than its neighbors, since fossil fuels make up only 5% of the power generation in the country. The currency is also backed by the central banks, which is willing and able to quickly return the inflation to the target value.

The Swiss franc has grown over 7% compared to the euro since June, because the growing recession fears continue to push investors into a safe haven. As Stephane Monier, Chief Investment Officer at Lombard Odier Private Bank, said in an article from August 31:

– The Swiss National Bank (SNB) is countering rising prices with higher interest rates. Unlike other policymakers, it has signaled a willingness to intervene to keep the Swiss franc strong.

The Swiss franc also has a historical advantage compared to the dollar. Since 1999, the franc has grown as much as 30% compared to the American currency.