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TTU43: The Case For Currencies As An Asset Class ft. Mark Whitmore of Whitmore Capital Management – 1of2

Top Traders Unplugged

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The Swiss Franc Conundrum

The Swiss franc for the most part has on a purchase power parity basis remained somewhere between ridiculously and egregiously overvalued. The reason why Switzerland gets this premium essentially is two things one is the unbelievable level of current accounts or if you look at current accounts or plus the Switzerland and Switzerland and Singapore consistently are basically at the top of the world. As a result of that and as a result of literally the centuries of Swiss banking acumen there is a premium that I think the global currency community investing community places on the Swiss Frank. In a period of severe economic weakness in particular it might be very difficult for the Swiss bank to be able to maintain that paid to the euro because you would expect those currencies

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