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On the rewards to international investing: a safe haven currency perspective
The safe haven property of the Swiss franc presents a specific challenge for internationally minded Swiss-based investors. The central issue is whether the traditional under-performance of Swiss assets is made up by the secular appreciation of the Swiss franc combined with the propensity of the safe...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Springer International Publishing
2018
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6214293/ https://www.ncbi.nlm.nih.gov/pubmed/30443507 http://dx.doi.org/10.1186/s41937-017-0005-8 |
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author | Danthine, Jean-Pierre Danthine, Samuel |
author_facet | Danthine, Jean-Pierre Danthine, Samuel |
author_sort | Danthine, Jean-Pierre |
collection | PubMed |
description | The safe haven property of the Swiss franc presents a specific challenge for internationally minded Swiss-based investors. The central issue is whether the traditional under-performance of Swiss assets is made up by the secular appreciation of the Swiss franc combined with the propensity of the safe haven to strengthen in times of market stress. In this paper, we review the evidence on the terms of this challenge. We conclude that a Swiss bias in asset allocation can lead to considerable return shortfalls over the long run and that systematic currency hedging would not have been historically justified and is unlikely to be in the future. Assuming a fair amount of currency risk thus appears inevitable for long-run Swiss-based investors. |
format | Online Article Text |
id | pubmed-6214293 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2018 |
publisher | Springer International Publishing |
record_format | MEDLINE/PubMed |
spelling | pubmed-62142932018-11-13 On the rewards to international investing: a safe haven currency perspective Danthine, Jean-Pierre Danthine, Samuel Swiss J Econ Stat Original Article The safe haven property of the Swiss franc presents a specific challenge for internationally minded Swiss-based investors. The central issue is whether the traditional under-performance of Swiss assets is made up by the secular appreciation of the Swiss franc combined with the propensity of the safe haven to strengthen in times of market stress. In this paper, we review the evidence on the terms of this challenge. We conclude that a Swiss bias in asset allocation can lead to considerable return shortfalls over the long run and that systematic currency hedging would not have been historically justified and is unlikely to be in the future. Assuming a fair amount of currency risk thus appears inevitable for long-run Swiss-based investors. Springer International Publishing 2018-06-19 2018 /pmc/articles/PMC6214293/ /pubmed/30443507 http://dx.doi.org/10.1186/s41937-017-0005-8 Text en © The Author(s) 2018 Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. |
spellingShingle | Original Article Danthine, Jean-Pierre Danthine, Samuel On the rewards to international investing: a safe haven currency perspective |
title | On the rewards to international investing: a safe haven currency perspective |
title_full | On the rewards to international investing: a safe haven currency perspective |
title_fullStr | On the rewards to international investing: a safe haven currency perspective |
title_full_unstemmed | On the rewards to international investing: a safe haven currency perspective |
title_short | On the rewards to international investing: a safe haven currency perspective |
title_sort | on the rewards to international investing: a safe haven currency perspective |
topic | Original Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6214293/ https://www.ncbi.nlm.nih.gov/pubmed/30443507 http://dx.doi.org/10.1186/s41937-017-0005-8 |
work_keys_str_mv | AT danthinejeanpierre ontherewardstointernationalinvestingasafehavencurrencyperspective AT danthinesamuel ontherewardstointernationalinvestingasafehavencurrencyperspective |