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Effect If Foreign Holding Companies Lose Their Advantageous Tax Status

According to the Canton of Geneva based on a CREA-Study (french), the effect, the decision to discontinue the advantageous tax status foreign holding companies enjoy, would be substantial and very negative for Genevas’ finances. Most of the holding companies that would be affected are active in the finance and trade sector. They employ close to 20k employees which is 8.1% of all jobs in Geneva. Yesterday I wrote: “Some small questions marks…


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Is the Property Market in Switzerland Forming a Top?

Real Estate in Switzerland is looking decidedly fully priced in absolute terms. People are paying these lofty prices with the same arguments I heard from people I was working with on the trading desk in London, shortly before the major correction across the UK struck and images of the demise of Northern Trust went around the world. 1. The population is growing 2. Space is getting rarer 3. Long term…


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Will Dividend Payout Hold Up Going Forward

Payout ratios in the US are at multi-decade lows, leaving room for increases while at the same time demonstrating relatively small downside potential, the above chart would suggest. This of course also applies to the equities we watch in Europe and Switzerland in particular. In the words of BlackRock: The key is to focus on companies with strong balance sheets, exposure to fast-growing emerging markets and a track record of dividend…