7 hours ago
High-net-worth clients crossed Asia are gradually pivoting distant from US dollar-based investments, favoring gold, cryptocurrencies and Chinese assets instead, according to fiscal services elephantine UBS Group.
“Gold is getting precise popular,” Amy Lo, the Swiss bank’s co-head of wealthiness absorption for Asia, said during Bloomberg’s New Voices lawsuit held successful Hong Kong connected May 13.
She cited rising geopolitical uncertainty and persistent marketplace volatility arsenic superior factors down the shift. Investors, traditionally concentrated successful US-centric assets, are present seeking broader vulnerability crossed alternate plus classes, including crypto, commodities and different currencies.
Lo said “volatility is decidedly present to stay,” prompting clients to rebalance toward perceived harmless havens and maturation opportunities successful caller regions.
China, aft years of muted interest, is besides regaining traction among the ultra-wealthy. Lo noted that clients who antecedently avoided vulnerability to China are present proactively asking astir concern opportunities.
Hong Kong’s benchmark index, heavy composed of Chinese companies, has emerged arsenic 1 of the world’s apical performers successful 2024, further fueling interest.
Hong Kong Stock Market Index. Source: Trading EconomicsBank of America’s latest money manager survey besides shows that planetary money managers importantly reduced their vulnerability to the US dollar successful May, marking the largest underweight presumption successful 19 years.
Related: US Bitcoin reserve vs. golden and lipid reserves: How bash they compare?
US-China tariff truce sparks capitalist optimism
Christina Au-Yeung, caput of Investment Management Services astatine Morgan Stanley Private Wealth Management Asia, told Bloomberg that a caller tariff truce betwixt the US and China has created renewed capitalist optimism.
“We are seeing an emergence of truly absorbing themes coming backmost retired successful China,” she said.
Au-Yeung besides pointed to a increasing risk-aware mindset among Asia’s wealthiest clients. The steadfast present recommends a balanced portfolio allocation, including 40% fixed income, 40% equities, 15% alternatives, and the remainder successful currency oregon equivalents.
On May 11, the US and China announced an agreement to temporarily trim tariffs connected each other’s goods. As per the deal, the US volition little tariffs connected Chinese imports from 145% to 30%, portion China volition trim duties connected American goods from 125% to 10%.
Related: Bitcoin acts similar ‘store of worth that it is’ amid Trump argumentation chaos: NYDIG
Bitcoin viewed arsenic a store of value
In a caller note, Galaxy Digital analysts said Bitcoin is progressively being viewed arsenic a integer store of value, noting increasing involvement from institutions, exchange-traded funds (ETFs) and adjacent governments.
“Bitcoin’s proviso and request dynamics are solidifying its spot arsenic a mature integer store of value,” said Ian Kolman, co-portfolio manager astatine Galaxy.
Supporting this view, BlackRock’s caput of thematics and progressive ETFs, Jay Jacobs, noted connected April 25 that nations are progressively diversifying distant from US dollar reserves, turning alternatively to assets similar gold — and now, Bitcoin (BTC) — arsenic portion of a broader displacement successful reserve strategy.
Magazine: Metric signals $250K Bitcoin is ‘best case,’ SOL, HYPE tipped for gains: Trade Secrets
English (US) 