The Swiss Market Index (SMI) represents some of the most globally diversified and defensively positioned companies. Dominated by sectors such as pharmaceuticals (Novartis, Roche), consumer goods (Nestlé), and financial services (Credit Suisse, UBS), the index reflects the stability and resilience of the Swiss economy, particularly during periods of global uncertainty.

2019: Pre-Pandemic Growth

In 2019, the SMI was in a bullish phase, with consistent upward movement driven by strong corporate earnings and low interest rates globally. The index closed 2019 with a gain of approximately 26%, buoyed by stellar performances from pharmaceutical giants Roche and Novartis, as well as Nestlé, which benefited from growing consumer demand and product innovation.

2020: COVID-19 Impact and Recovery

The pandemic-induced market crash in March 2020 led to a steep sell-off, with the SMI losing 20% in value between February and March. However, the index rebounded quickly, outperforming many European counterparts, owing to the defensive nature of its key components. The healthcare sector, particularly Roche and Novartis, provided a buffer during the crisis as demand for medical supplies surged. Nestlé also benefited from increased demand for consumer staples as lockdowns drove stockpiling and shifts in consumer habits.

By the end of 2020, the SMI had largely recovered, posting a 3.82% annual gain, driven by the strength of the healthcare sector and Switzerland’s stable economic policies.

2021: Bullish Momentum Continues

In 2021, global markets continued to recover, and the SMI surged further, reaching an all-time high. The index closed 2021 with a gain of 20.3%, supported by strong earnings in the pharmaceutical sector as vaccine rollouts began and companies like Roche expanded their diagnostics business. Nestlé continued its strong performance, benefiting from the growing health-conscious consumer base and successful expansion into plant-based products.

2022 - A Year of Volatility and Resilience

The year 2022 was marked by global uncertainty stemming from geopolitical tensions, inflationary pressures, and tightening monetary policies. Despite these challenges, the SMI demonstrated remarkable resilience. Supported by its strong economic fundamentals and robust financial system, the index managed to navigate the choppy waters, showcasing its inherent stability. This chapter examines the key events that shaped the SMI's performance, analyzes the impact of global events on the Swiss economy, and highlights the role of key sectors within the index.

2023 - Navigating the Economic Headwinds

The year 2023 saw the continuation of global economic headwinds, with inflation remaining a concern and central banks cautiously navigating monetary policy. This chapter explores the impact of these factors on the SMI, analyzing potential scenarios and evaluating the resilience of Swiss companies in the face of these challenges. It examines the influence of emerging technologies, sustainability initiatives, and geopolitical developments on the index's trajectory.

2024 - A Year of Potential Growth and Opportunity

Looking ahead to 2024, the global economic landscape is expected to evolve with potential for increased growth and renewed investor confidence. This chapter explores the factors that could contribute to the SMI's potential growth, analyzing the role of innovation, technological advancements, and evolving consumer behaviors. It presents scenarios for the SMI's performance, highlighting opportunities and challenges that may arise.