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Swiss bonds are super safe, but they have ~0 interest rate and so you lose out on inflation.
by marcyb5st 9mo ago
Swiss bonds are super safe, but they have ~0 interest rate and so you lose out on inflation.
- vdupras 9mo agoWell, CHF gained 12% on USD YoY, so I guess that it ends up being much better yields than US treasuries.
- marcyb5st 9mo agoThat is fair. Sorry, colored by the fact that I actually live in Switzerland and so investing them in Swiss treasuries is like keeping the cash for me.
- jacquesm 9mo agoThat's an easy mistake to make. When you're looking internationally you always have to take the rates into account. For you it doesn't matter, but a lot of parties are investing in Swiss treasuries exactly because it is like keeping CHF. which tends to do well relative to their own. The long term USD vs CHF rate works out strongly in favor of holding CHF.