Permanent Portfolio Message Board
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Swiss Franc: a real concern for this fund?
Here and there we have some comments/concerns about the fund investing in Swiss Franc. I would like to start a focused discussion on the issue. Do you think Swiss Franc could drag down the fund? Why and why not? please stay on the topic. Thanks. Lee
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If you dont want SF in your mix you can move over to PERM which is the new EFT to copy this fund. I checked and it does not include SF. I am staying with PRPFX.
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I guess one would ask why use the Swiss Franc to hedge against the U.S. dollar? Currently the Swiss franc is pegged to the euro, and the euro is in trouble.
I suppose one could just reapportion the money in Swiss francs into gold.- 3 Replies to northtower91
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Strength stable appreciation and an inflation hedge. what more do you want ?
A shovel to bury you freakin dollars? -
There was a time when the Swiss franc was independent. I believe this fund's and Harry Browne's concepts go back to that time. But in the current environment, maybe changes are called for?
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The FR is not a true peg to the euro but for this conversation lets say it is.
Botton line is for the moment 10% of this fund is at risk of decline of 5% - 10%. The purpose of the fund is deversification. The fund is not changing its mix. If you dont like it move on
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From latest prospectus--
"Risks of investments in Swiss franc assets—the Swiss franc is subject to the risk that inflation will decrease in the United States, or rise in Switzerland. Swiss government bonds are subject to some risk of default, and their credit quality is not rated by some U.S. rating agencies. The Portfolio may also be significantly affected by other economic, monetary or political developments in Switzerland."
Inflation for Swiss is currently negative.
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