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| Here are two pictures of Switzerland - the first is the iShares ETF (EWL) (the "L" is for lederhosen), half of which is made up of health care and consumer staples stocks. Nestle accounts for just over one-fifth of the entire fund, while Novartis and Roche account for another 25%. The chart may be forming a bearish rising wedge, and with only three companies comprising 44% of the fund, any one slip up would hit it hard. |
The second chart is a ten year look at the Swiss Franc, showing a long term high. This could be another negative for the ETF, as customers in other countries - especially those stuck with the Euro might have to buy less of the more expensive Swiss products.
