Market Overview

Hide In The Swiss Franc

With concerns about the U.S. debt ceiling and European bailouts continuing to persist, many investors are looking for ways to hedge against the falling euro and greenback. Gold has become a popular investment for many, but it's not the only game in town.

One answer could lie with the Swiss Franc. Over the past six months the currency has gained more than 15% vs. the U.S. dollar. Switzerland's conservative national accounting coupled with its gold reserves has helped reaffirm the currencies status as a safe-haven. With the Fed signaling "more of the same," and with Euro-zone debt problems continuing to plague the markets, exposure to the Swiss franc is prudent.

For investors, the easiest way to add the currency to a portfolio is through the CurrencyShares Swiss Franc Trust (NYSE: FXF). While much of the real upside for Franc could be gone, the currency makes sense as a hedge. Investors looking to diversify away from gold should give the Franc and FXF a go.

Disclosure: Author is Long both FXF and Gold (IAU)

Posted-In: currencyLong Ideas Specialty ETFs Currency ETFs Forex Global Trading Ideas ETFs Best of Benzinga

 

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