Stefan Eppenberger, Head of Investment Strategy, Vontobel:

Keeping an Eye on Currencies. (Image: Courtesy)

Swiss private investors often underestimate the importance of the Swiss franc for their portfolios. Since the turn of the millennium, the US dollar has depreciated by approximately 47 percent against the franc, translating to an annual currency loss of around 2.5 percent for Swiss investors in dollar-denominated assets.

Given that over two-thirds of globally listed companies trade in dollars, Swiss investors cannot avoid exposure to this currency. Therefore, the most pressing question for Swiss private investors in 2025 will likely be how the SNB manages the franc’s strength, as the bank aims to prevent excessive appreciation of the local currency.

Currently, this is being addressed through rate cuts, but we are already approaching the zero-percent mark. Other central banks have greater room to cut rates, reducing the interest-rate advantage of other currency zones. As a result, unconventional monetary policy measures may re-emerge as a topic for the SNB in 2025.