iShares MSCI Switzerland Index Fund(ETF) (AMEX:EWL)

Switzerland last I remember has the highest percentage of millionaires of any other country. If that doesn't point to a solid economy, I don't know what does.

Peter Schiff made a compelling case against the US Dollar, and combine that with the fact that Switzerland is a war neutral country, it should continue to do well.

-Lee

Escape the woes of the US dollar, the euro, the yen and the pound.

Switzerland leads the nations in economic freedom.

It's "steady Eddy" and has outperformed for most of a year.

3 to 5 star stock in one year.

Switzerland

A weak dollar will take a toll on EWL's pharmacological exports to the US but excellent management and an outstanding track record have persuaded me to give it a thumbs up.

Safe but minimal returns, a simple phrase that can sum up the investment mood of European markets counting for the past four years. With most European economies growing in a low single digit, this came as no surprise. So when a fund invests in publicly traded companies in Switzerland, it was not expected to buck the trend. But conversely, ishares MSCI Switzerland Index fund managed to garner 30% return for the year 2006.

This is due to the fact that the fund is a mix of firms, some of which are influenced by domestic events while others by international events. For example the firm has a sizable investment in Pharma sector, which is largely influenced by the international sector while the investment in the insurance and other financial services sector was swayed by the domestic events.

The pharma sector in Switzerland exports 85% of its products, a factor which alone goes against the fund as the year 2007 is going to be see a fall in export opportunities as a result of weakened U.S.economy. Novartis and Roche which together accounts for the 24% invested fund in pharma expect rough patches ahead. The next big chunk of the fund is invested in the financial sector, cornering as much as 25%, which is closely linked to the domestic economy. With the Swiss economy heading for a slow down in 2007 and economic growth expected only around 1.7%, the financial sector will be taking the wrath. These factors point to the inability of the fund to repeat its stellar performance.