Foreign Currency: Swiss franc still a good bet?

Posted April 9, 2008

“If you think happy days are here again, the Swissie probably isn’t the place to be. If you think we’re in for more turmoil, however, then the Swiss franc is a strong bet.” — Justice Litle

by Justice Litle

Baltimore – (TFN): Switzerland has long been known as a safe haven in times of turmoil. The reputation applied to Swiss Banks — before some of them got mixed up in subprime — and to the Swiss currency, too.

The Swiss franc, or “Swissie,” is still a strong safe-haven candidate today. As you can see from this weekly chart, the Swissie has risen dramatically over the past six months or so.

This is partly due to investors seeking safety, and partly due to an unwinding of the carry trade.

If you think happy days are here again, the Swissie probably isn’t the place to be. If you think we’re in for more turmoil, however, then the Swiss franc is a strong bet.

Foreign Currency: Find a way in

There are various ways to get exposure to the Swiss franc. For example, you could buy FXF, the Swiss franc currency ETF traded on the New York Stock Exchange. Or you could buy Swiss franc futures, or long dated options on Swiss franc futures.

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Justice Litle is a regular contributor to Taipan Daily, your FREE resource for late-breaking investment opportunities to help you beat Wall Street to the profits.

Filled with investment analysis and insight for every sector (from blue chips to small caps… from options to ETFs… from emerging markets to the tech sector), Taipan Daily delivers just the right blend of safe opportunities with the fast-moving plays, so you have an insider’s edge over the Street… and other investors.

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The safest way to get into the Swissie, however, is probably with a currency CD from Everbank. Everbank offers a variety of foreign currency CDs, and if you’re looking to diversify your portfolio globally, then foreign currencies could be a good addition to your portfolio.

They offer an amazing combo of upside participation and customer protection, and that’s pretty hard to find. View a chart of the Swiss franc and find more by Justice.

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