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"We are in the business of making mistakes. Winners make small mistakes; losers make big mistakes."
-- Ned Davis
Very interesting chart from Mensur Poncini at Julius Bär. It shows the performance of the Swiss Performance Index, an equity index constituting 211 Swiss stock across the entire market cap segment, during different currency ‘regimes’. When the Swiss Franc is rising against a majority of other currencies, the index returns on average 1.76% per annum (upper clip, blue line). However, if the Swiss Franc is falling against most other currencies as it is now (lower clip), then the average return tends to be much, much higher at 13.7% (upper clip, red line). Hence, as we have mentioned in several issues of The Quotedian this year, the Swiss Equity Market offers a good catch-up potential, and, if not now, then when …?
