Despite progress in vaccine rollouts and signs of recovery in some countries – which has encouraged a rotation towards coronavirus-vulnerable sectors in global equity markets – the Switzerland Index has continued to underperform the USA Index both in local-currency (LC) and common-currency terms. Accordingly, strategists at Capital Economics are revising down their forecast for Swiss equities. End-2021 and end-2022 MSCI Switzerland Index forecasts lowered “Our view remains that the rotation in global equity markets will resume soon. All else equal, we still expect this to benefit the Switzerland Index given its high combined weighting of coronavirus-vulnerable sectors.” “The Switzerland Index would continue to miss out on the rotation towards energy, which we think is set to perform well for the remainder of this year. We have pencilled in the price of Brent oil pushing higher to $70 by end-21 (from ~$67 currently). What’s more, the Switzerland Index has a higher share of ‘defensive’ sectors than the USA Index (~59% and ~22%, respectively) – such as consumer staples, healthcare and utilities – which are likely to gain less in a cyclical upturn such as the one we are forecasting.” “We now think that the MSCI Switzerland Index will rise by around 8% between now and end-2022 in LC terms, which is roughly in line with the returns we project for the USA Index during this period. What’s more, given that we expect the Swiss franc to weaken further (to ~0.99 per US dollar by end-2022), we forecast that the returns of the Switzerland Index in US$ terms will be broadly flat over this period.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD moves to fresh highs near 1.2080 FX Street 2 years Despite progress in vaccine rollouts and signs of recovery in some countries - which has encouraged a rotation towards coronavirus-vulnerable sectors in global equity markets - the Switzerland Index has continued to underperform the USA Index both in local-currency (LC) and common-currency terms. Accordingly, strategists at Capital Economics are revising down their forecast for Swiss equities. End-2021 and end-2022 MSCI Switzerland Index forecasts lowered "Our view remains that the rotation in global equity markets will resume soon. All else equal, we still expect this to benefit the Switzerland Index given its high combined weighting of coronavirus-vulnerable sectors." "The Switzerland Index… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.