The allure is gone

In previous decades, global investors often plowed assets into the Swiss franc during times of war or international uncertainty.

“Banking secrecy and neutrality within Europe were appealing during times of heightened uncertainty,” Lynch says.

However, he notes that with the collapse of the Berlin Wall and the fall of the Soviet Union, it’s a different world now. Also, in the wake of Sept. 11, greater transparency was forced upon the Swiss banking system.

“The reasons for buying the Swiss in a safe-haven fashion] aren’t quite as compelling as they used to be,” he says.

Indeed, in recent times of turbulence, global investors have actually been flocking to the safety of U.S. Treasury bills.

“Whenever there is a global crisis of confidence we’ve noticed that the dollar has strengthened,” Woolfolk says. “When you can get five percent on the dollar in the U.S., why bother with 2 percent in Switzerland?”