Swiss Value Dividend Stocks strategy

Faced with the devaluation of the dollar, we have taken a number of measures so far, which are certainly useful, but insufficient. We must indeed note that our performance is weighed down by the strength of the CHF, while with the euro as the reference currency the picture is quite different. As we prioritize income and consider stock market capital gains as a happy consequence of a good dividend policy, we must put all the weapons on our side to be able to ignore the parasitism of the stock markets and especially the money markets.

As a reminder, an important measure consisted of taking into account the volatility of securities no longer in their original currency, but in CHF, making certain values more attractive as they resist variations in the dollar well, such as Coca-Cola. We also included Swiss stocks paying increasing dividends, such as Rock, Novartis and Nestlé.

Lastly, we gave a little more weight to the securities that react particularly well to variations in the dollar. Some stocks, particularly in the raw materials industry, have climbed in our ranking portfolio. This is particularly the case for Chevron. The points collected have not been enough to make them buying opportunities for the moment, but the effect will not be long in coming. Let us remember that we are adopting a long-term perspective and that rather than making sudden turns of the steering wheel, we prefer to gently turn the rudder to steer the ship in the right direction.

We still believe that the measures taken above are sufficient to return to profitability in CHF worthy of the name in the medium term. We are convinced that the CHF will gradually stabilize, then lose its luster to the detriment of the euro and the dollar. Indeed, while the US and European governments will be increasingly forced to take austerity measures to meet market demands, the Swiss government will also have to take emergency measures with regard to its exporting companies that are at the end of their rope. Lonza and Von Roll have just adopted drastic measures (increase in working hours violating the collective labor agreement for the former and payment of cross-border staff in euros for the latter).

Even if we believe in a future decline of the CHF against other currencies, we could also be wrong. For this reason, and since we absolutely want our performance to have the lowest possible correlation with currency fluctuations, and to a certain extent also with the stock market, we have decided to create a new strategy, completing that of the "Global Dividend Growers".

The idea is to invest in profitable Swiss SMEs, with little exposure to exchange rate risk, little debt and an attractive valuation. They pay a dividend, but unlike our strategy "Global Dividend Growers"This does not necessarily increase every year. Our first purchase is Pax-Anlage, which we will tell you about tomorrow.