GO
Loading...

Swiss Equities May Profit from Low Interest Rates

Larry Smith, chief investment officer at Third Wave Global Investors, told CNBC’s “Street Signs” that interest rates in Switzerland are significantly lower than in the United Kingdom, creating an opportunity for investors.

“Short-term interest rates in Switzerland are 300 basis points lower than they are in the U.K.,” Smith said Wednesday. “What that means is positive surprises in local growth in Switzerland and negative surprises in local growth in the U.K. We see that in terms of earnings revisions, which are much more positive for Switzerland than they are for the U.K.”

He said the Swiss franc is weak while the British pound is strong.

“We look at equities separate from currencies and separate from bonds,” Smith explained. “In so doing, if you can invest in Swiss equity futures, they’re currency neutral."

He advised investors to "go long Swiss equity futures and go short in U.K. equity futures," adding that "there’s no currency involved in this -- you get the pure equity exposure, which I think is strongly in favor of Swiss companies.”

Contact Street Signs

  • Showtimes

    United States
    Monday - Friday 2:00P ET
    Europe
    Monday - Friday 20:00 CET
    Asia
    Tuesday - Saturday 02:00 SIN/HK
    Australia
    Tuesday - Saturday 04:00 SYD
    New Zealand
    Tuesday - Saturday 06:00 NZ
  • "Street Signs" Co-Anchor

  • Co-anchor of CNBC's "Street Signs," Amanda Drury is based at the network's global headquarters in Englewood Cliffs, N.J.