Switzerland is the new Bengodi

The high value of the franc is the key for Switzerland to become richer: Reiner Eichenberger, professor of economics at the University of Fribourg, is convinced. "The strong franc creates disadvantages as a production location, but even greater advantages for the consumer: we import more cheaply, so costs go down", explains the specialist in an interview published by the financial portal Cash.

"Since the franc strengthened, we produce a little less, we work so even a little less but, thanks to the lower prices of imports, we consume more and people can save money" Eichenberger says. "Work less, consume more and save more: that's Bengodi!".

According to the Freiburg professor, import companies overturn the advantage of the lower price of products, "But even if they do not entirely, the exchange gain remains into the same company, then in Switzerland."

The strengthening of the franc increases the purchasing power. "A strong currency is like gold, if the franc were infinitely stronger, you could buy the whole world with a franc, it would be fantastic."

During the interview, the 55 year-old specialist also provides its investment advice. "If a financial advisor recommends you individual shares or otherwise doesn't recommend the purchase, he just wants to earn", he says, adding that the market is efficient: you can not bet on a higher performance systematically.

"The question is: I have to invest in a well-administrated or in a poorly managed company? Most people would answer: well managed, of course. But actually the expectation of performance of the shares of both types of enterprise is the same; a company will pay less dividends when it is badly managed, but this is already covered by the share price. The money is well invested in both companies. Everything else is bad luck or good fortune. "

According Eichenberger, financial advisers must know the risk profile of their customers and have to evaluate the potential of their assets and must be able to diversify and optimize business risks.

What do you think about this article? Leave your point of view on Facebook