Swiss equities as a safe haven in times of crisis

Production at Nestlé, Roche, Novartis and Givaudan

Swiss stocks from the pharmaceutical and food sectors are considered crisis-resistant.

(Photo: AFP/Getty Images)

Frankfurt. The Swiss financial market has the reputation of being a haven of stability. In times of crisis such as the current war in Ukraine, Swiss stocks develop a life of their own and are more resilient than many other markets. Among other things, the Swiss stock market offers investors industry giants such as Roche and Nestlé in less cyclical areas.

The investment strategists at Swiss private bank Maerki Baumann have already switched towards Swiss equities. Chief investment strategist Gérard Piasko said in an interview with the Handelsblatt: “Within the equity component, we have overweighted Swiss equities. The pharmaceutical and food stocks are less dependent on the economy, which should pay off in the coming months.”

It is important to focus on quality stocks. These are companies that can absorb higher input costs – such as raw materials – through their pricing power, have shown stable profitability across different economic cycles and have relatively low levels of debt.

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