CEO Hits Out at Short-Term Analysts


The CEO of Swiss watch giant Swatch says his view on the market is far more reliable than that of many market analysts.

Sharon Lorimer

After the company reported record sales driven by strong demand from the US and Europe, Swatch CEO Nick Hayek Jr. told CNBC Wendesday he knew the market far better than those watching the stock market.

“We are professionals, we are working every day for many years in this market," Hayek said. "We are not just predicting things like a weather forecast, like the analysts are doing. If you read the analysts and what they have predicted most of them are totally away from the reality."

Part of the advantage is having the direct data, he said.

"We know what we are doing, we are not doing predictions," he said. "We have the numbers; we know the consumers and we get sales re-information."

"We were right in 2009, we were right in 2008," Hayek added. "It's not just that we are bullish. We know about the market and we know how to get to the consumer and what the consumer is doing."

"This does not mean that we are always right 100 percent on what we do, but we know the market and that's why our predictions are realistic and not just optimistic or bullish because we are professionals we know the market," he said.

In a broadside at the media and the analyst community, Hayek said the market is so volatilethat today’s concerns can evaporate very quickly.

"Every day you take numbers for consumer spending, houses and then you make a new interpretation but we are looking long term," he said. "You are just looking at numbers that are thrown at the markets short term."

"The interpretations were that the building of homes in the United States had increased (an) now a week later, oh, consumer spending is less," he added. "Look, this is short-term interpretation. There is no indication at all why in the second half of the year we should not have a solid growth."

"There is growth and for people who (perform) good work and have good products, they can make good business," Hayek added. "Now the speculation that it will not be good and indications are bad, forget about the markets, talk to the entrepreneurs and not with the analysts and the stock markets. These are the people who will give you the right direction."