Switzerland: post-Brexit pal and investment hotspot?


While confusion over Brexit and the effects it will have on trading are rife, investors are seeking to find the best countries and platforms that they can use without the risk and uncertainty that Brexit brings. It may prove a tricky time for many financiers, but there is one part of Europe that traders are actively pursuing as an option when it comes to the stock exchange – Switzerland.

In February 2019, Switzerland became one of the first countries to agree a post-Brexit deal with the United Kingdom. Whilst the UK have since made deals with several other countries – like Japan, for example – let’s take a look at why Switzerland could be an investment hotspot.

Let’s start off with a more-than familiar brand; Nestlé. The company has been around for over 150-years, and is recognised globally as one of the biggest food and drink conglomerates in the world. Since 2014, the Swiss-based business has been a big-hitter in the world of finance, producing a range of products which are exported to a plethora of different countries around the globe.

Nestlé, whose stocks can be found on the Swiss Stock Exchange, like most companies, were affected by the global coronavirus pandemic. Concerns about the supply chain affected their stock price. However, after a rough patch, Nestlé’s stock price is rising rapidly and is trading at an all-time high.

Another heavy-hitter in the food industry is Lindt, a chocolate brand well associated with Switzerland, being one of the nation’s proudest exports. The Swiss chocolatier and confectionary company was founded back in 1845 and is best known for its chocolate truffles and bars. Trading on the Swiss Stock Exchange, Lindt has recovered well from its 52-week low back in March.

The timepiece industry is another market which has strong ties to Switzerland. The ever-popular company – Rolex – is owned by a private trust, meaning that it is not publicly traded. However, the Swatch Group is still listed on the stock exchange. Established by Nicolas Hayek in 1983, Swatch owns several luxurious watch brands, including Longines, Omega, and Tissot.

It may not be a massive mover, but it’s worth noting that the Swatch Group share price has gained 14% in the last three months. Therefore, now may be the perfect time to get onto a CFD trading platform like Skilling, with investments in the Swiss watch company potentially holding strong value in the future.

Of course, the Swiss are also well-known for their banks and insurance companies, and several of them sit within the top 20 stocks trading on the Switzerland Stock Exchange – including banks UBS, Credit Suisse, Julian Bear, and reinsurance companies Zurich and Swiss Re.

Most of these companies crashed to 52-week lows due to the pandemic back in March, but steadily improved throughout the summer. However, amidst the certainty surrounding the virus, their stock prices are beginning to drop again.

Given the nature of Switzerland’s new relationship with the UK, it will be interesting to see how traders continue to interact with enterprises based there. As the economy begins to grow again after the dip caused by the coronavirus pandemic, many investors will be readying themselves to investigate the best investment opportunities Switzerland has to offer.