The Swiss National Bank (SNB) recently lowered rates by 50 basis points to counter the continued appreciation of the Swiss franc. However, is it really possible to fight against such strong fundamentals? Switzerland, thanks to exemplary economic management, continues to display impressive performance on several fronts.
Despite an uncertain global context, Switzerland stands out for its stable GDP growth of around 1.8%, a remarkably low unemployment rate (2.2%), inflation contained at 2%, public debt limited to 33 % of GDP, an average budget surplus of 0.8% and a current account surplus of 8%. All these data correspond to the 2022-2024 average, illustrating the country’s enviable stability.
Own strengths
Switzerland excels thanks to quality education, modern infrastructure, competitive taxation and stable economic and social policy. An effective regulatory framework and low inequality (Gini index of 31.1) reinforce its attractiveness. This model is also based on continuous innovation, particularly in cutting-edge technological sectors supported by leading scientific universities.
The Swiss franc, a safe haven
Although the Swiss franc is strong, this reflects high productivity and a strategic economic vision. For investors, this robustness provides access to a unique and stable capital market. Swiss stocks are not limited to the large, well-known “mega caps”, but also include diversified companies that offer an excellent alternative to US markets and help diversify an investment portfolio.
Opportunities in Swiss equities
In this context, certain Swiss companies stand out as strategic pillars and attractive investment opportunities:
- Holcim: leader in construction and infrastructure, Holcim is a major player in the energy transition, illustrating great adaptability in a crucial sector.
- Accelleron: active in the energy transition, Accelleron offers innovative solutions in growing markets, thus strengthening its global positioning.
- Jungfraubahn: with an activity rooted in Swiss territory, this company offers a concrete connection to Swiss natural wonders, while ensuring remarkable quality and sustainability.
- Galderma: combining pharmacy and beauty, Galderma represents a defensive investment choice while being at the forefront of trends.
- Comet: essential in key industries such as semiconductors, automotive, aerospace and security, Comet embodies Swiss technological excellence.
Switzerland continues to prove that its enlightened management and innovative companies are unshakeable strengths. The Swiss franc is not an adversary to be fought, but an element reflecting the country’s exceptional economic resilience. For savvy investors, tapping into the Swiss capital market represents a winning strategy to benefit from both the stability and unique opportunities this exceptional economy offers, while effectively diversifying their portfolio from excessive exposure to U.S. markets.
