Investing in Euro 2008 (and Swiss punctuality)
It's going to be interesting when hordes of tourists from across Europe and hinder pour into Switzerland June 7 for the start of the European football (that's soccer to you and me) championships. Extra trams and trains are already being rolled out to make sure fans make it everywhere they need to go -- on time.
So, how does one think about "playing" the Euro 2008?
One could try the iShares MSCI Switzerland Index Fund (NYSE: EWL). Looking under the hood and the top ten holdings show a smattering of some of the world's biggest financials, consumer goods, pharma, and industrials. If your view is that these multinational firms may benefit from Euro 2008, then do some work here. Hasn't been a great investment over the past year but it does provide international exposure to some well-run, diversified firms.
Another Swiss play is the CurrencyShares Swiss Franc Fund (NYSE: FXF). If your view is that the Swiss Franc will continue its run against the US Dollar (what hasn't these days?) this is one way to look at it. Doesn't pay a whole lot of yield but typically pretty strong vs. the greenback.
For investors betting that all the tourists impressed with the Swiss compunction will want to take home a souvenir, there's the Movado Group (NYSE: MOV), selling fine Swiss watch brands such as Movado, Concord, and Ebel. What could be a better gift than a watch to say "I'm thinking about you"? There's a watch produced by Movado for everyone, at every price point.
As for me, I'm just going to kick back and watch the festivities from afar. I'm sure the time will always be easy to tell.
Zack Miller is the lead equity analyst for America Israel Investment Associates, LLC., the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.
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