Thursday, September 15, 2011

Investopedia: When Time Are Tough, Should Investors Go Swiss?

When the going gets tough ... the tough go to Switzerland? That may not be entirely (or even mostly) accurate, but it certainly seems true that in periods of economic turbulence and in times where other governments seem profligate or inept, investors look back to Switzerland as something of a safe haven. Switzerland has a well-earned reputation for conservatism and consistency, and there are valid arguments for investors to look to hedge some of their exposure to North American or Eurozone economies with some allocation to Swiss assets.


Swiss Companies to Consider
Consider, then, some of the following Swiss companies. Keep in mind, though, that as Switzerland is such a small country, most successful Swiss companies have become successful by becoming global. So it is a bit of a straw man to think that simply being a Swiss company is a shield against the ups and downs of the global economy.

ABB (NYSE:ABB)
ABB is a good example of a Swiss company that has little to do with what is going on in Switzerland. This global leader in power and automation has been testing 52-week lows as investors' fears of slowing orders outweigh their optimism regarding the company's cost-cutting initiatives and late-cycle positioning. Automation is here to stay, though, and power infrastructure upgrades are a "when, not if" decision, so this looks like an interesting play at it hits lows.


Click the link below for more:
http://stocks.investopedia.com/stock-analysis/2011/When-Times-Are-Tough-Should-Investors-Go-Swiss-ABB-CS-NSRGY-NVS-SYT-RIG-UBS0914.aspx

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