⚠️🔻Swiss Franc May Be Best Expression to Hedge Risk Downside: Cable FX Macro

• I've extracted that there is a belief that the franc serves as the best hedge against a decline in U.S. equities stems from the notion that if equities are sold off aggressively from analyst chatter. The market might anticipate the Swiss National Bank reducing its extensive equity holdings. This expectation could lead to repatriation flows that support the CHF.

• The Swiss National Bank (SNB) has established a significant presence in the global financial markets, with its portfolio value in U.S. equities reaching an impressive $167 billion. This substantial investment is predominantly concentrated in major technology companies, often referred to as tech heavyweights, which include some of the most influential and valuable firms in the world. These companies are characterized by their innovative products, robust growth potential, and substantial market capitalizations, making them attractive targets for large institutional investors like the SNB.

• In conclusion, while the Swiss franc has long been viewed as a reliable safe haven, the implications of a U.S. tech-driven sell-off present a complex scenario. The interplay between the health of the technology sector, the stability of the Swiss franc, and the broader economic context will be crucial in determining whether the Swiss franc can withstand potential market shocks and maintain its status as a refuge for investors during turbulent times.