A Swiss company may not be among the Stoxx Europe 600’s top 10 performers this year, but the country greatly contributed to the benchmark’s biggest gain in a decade. Other Swiss Stocks. Top 10 Stocks from the purely finance fact-based Obermatt Method for the investment strategies Value, Growth and Safety in the stock index Swiss Market Index SMI from August 7, 2020. The main draw is that these companies offer the potential of leveraged upside to the price of gold. For Eleanor Taylor Jolidon, a fund manager at Union Bancaire Privee in Geneva, Swiss stocks will remain attractive next year as investors seek high-quality shares in this low-growth environment, which is “extremely positive for the Swiss equity market,” she says. ☀ This company has a special achievement which is documented on its stock research page. As I said, the percentages can vary. Top 10 lists may contain fewer than 10 stocks due to Obermatt’s top 10 quality standards. More generally, the trend has been very positive for Swiss stocks since 2014, in sharp contrast with the euro-area stocks. August 7, 2020. UBP’s Taylor Jolidon says the trend toward sustainability and Environmental, Social and Governance is structural and gaining traction. The Swiss Market Index SMI is a major stock market index which tracks the performance 20 largest and most liquid stocks based in the Swiss Exchange. All rights reserved. With the novel coronavirus bearing down heavily on the market over the past few months, identifying the best stocks to invest in right now can be a difficult task. We invest in our stock tips ourselves and openly publish the returns of our portfolio. We invest in our stock tips ourselves and openly publish the returns of our portfolio. With slow global growth and low inflation, it should remain attractive as investors look for dividend growth, he says. In terms of total returns, the SMI is the only benchmark in Europe rivaling with the S&P 500 over the past two years. “It’s a bit boring but this is why Swiss equities work: they were winners in the last couple of years and will likely continue to be winners for the next couple of years,” Sauter says. Switzerland Top Companies by Market Cap as on 2020, Switzerland Largest Companies in 2020, Switzerland Biggest Companies by Market Cap as on 2020. Finally, there’s ESG. The SMI could be a “haven” among European indexes next year, Societe Generale strategists write in their year-ahead outlook, versus a more volatile DAX, biased toward exporters and cyclicals, an FTSE MIB dragged by weak Italian balance sheets and a FTSE 100 penalized by a rising pound. Kepler Cheuvreux’s Sauter sees ESG-compliant stocks outperforming going forward, and lists Barry Callebaut, Belimo, Geberit, Sika, SIG Combibloc and Stadler Rail as shares likely to benefit. Swiss companies also offer “fairly decent visibility” in terms of earnings growth expectations, she adds. They see a turbulent year ahead for markets, with a mild U.S. recession kicking in during the second or the third quarter of 2020, which will affect European equities, even more so with expectations of a weakening dollar. Kepler Cheuvreux head of Swiss equities Torsten Sauter agrees and sees Switzerland as likely to continue outperforming other markets in 2020. It is a free-float, capitalization-weighted index. (Free Stock Update). There are many benefits to buying gold stocks instead of the physical metal. The fund manager says the Swiss market offers the second-best cash-flow returns on investment after the U.S., but also companies with high-quality managers, sound strategies, strong brands, and a stable political backdrop. Between 20%and 40% to Swiss stocks is a good range. © 2001-2020 Obermatt. (Free Stock Update)☀ This company has a special achievement which is documented on its stock research page. That's how much we believe in our stock research. Top 10s are published weekly by Top 10 schedule. In terms of weight in the rally, Swiss stocks hold the top three spots with Nestle, Novartis and Roche, and the SMI Index is matching the S&P 500 when including dividends over the past two years. All rights reserved. Subscribe to the top 10 stocks for 100 markets conveniently by e-mail. Record 200 Days With No Local Case Makes Taiwan World’s Envy, S&P 500 Rebounds to Post Biggest Gain in Two Weeks: Markets Wrap, City Locked Down for Three Months Has Bleak Lessons for the World, U.S. Economy’s Path Less Certain After Record Quarterly Growth, S&P 500 Tumbles in Worst Stock Rout in Four Months: Markets Wrap.