For the log run, there is not much reason to believe that the franc will appreciate more against the U.S. dollar , and historical cash returns can hardly keep up with inflation. Rawson further adds that although the franc is seen as a safe-haven currency, in normal times it has an 87% correlation to the euro and the country has an outsized economic exposure to the hurting international finance sector.
CurrencyShares Swiss Franc Trust
Tisha Guerrero contributed to this article.
Read the disclaimer; Tom Lydon is a board member of the funds for Rydex|SGI.