Anecdotally, we’ve heard of wealthy folks who are dismayed at actions taken by the Swiss government to freeze the assets of Mideast dictators.
If the country known for its private banking will cave to international pressure like that, what’s the point?
Their preferred alternative is Singapore
Thus it’s interesting to read this from CLSA’s Chris Wood on the hottest alternative to Switzerland:
While all the momentum remains in the Swiss franc’s favour, macro investors might consider shorting the Swiss franc against the US dollar given that the pendulum has swung so far, albeit with a tight stop. Still GREED & fear’s favourite trade would be to short the Swiss currency against the Singapore dollar. While the Swiss franc is still seen as a safe haven currency, GREED & fear’s view is that the Singapore dollar, as an emerging private banking currency, is a better longer store of value. It is also a reality that the Monetary Authority of Singapore will remain under pressure to allow a further appreciation of the local currency against its trade- weighted basket to deal with inflationary pressures. CLSA’s economics team is still forecasting an appreciation of the Singapore dollar to S$1.15/US$ by the end of this year. GREED & fear’s long term target remains, as previously discussed, 80 cents against the US dollar. Remember back in mid 2001, the Singapore dollar was trading at the same level against the US dollar as the Swiss franc.
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