Struggling with GBP vs CHF vs USD investment approach

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49

Thanks for the writeup, some good summation points.

I have a very simplistic view, which is probably wrong - so happy to stand corrected.
In my eyes the current choice seems simple (in the short term):
A) Lose the inflation amount by holding cash (for CHF - in 2019 it was 0.36%, last couple of years in the range still below 1%)
B) Lose the amount of negative interest by holding negative yield bonds (not sure what the current going rates are)

For both of which we don’t know what changes come in the mid/long-term.

51

thans Tarioch for this
But do you see my issue with buying at 1500 and selling at 2400 in your example?

52

Let’s talk it through given my example

Case 1: You invest in the CHF version of the ETF

  • You buy 100 pieces of the ETF and pay 1500 CHF
  • You sell 100 pieces of the ETF and get 2400 CHF at the end => 900 CHF profit

Case 2: You invest in the EUR version of the ETF

  • You convert 1500 CHF into EUR => 1000 EUR and buy 100 pieces of the ETF
  • You sell 100 pieces of the ETF and get 2000 EUR and convert them back to CHF => 2400 CHF => 900 CHF profit as well