Rich Asian Investors Easing Up on US Market Over Trade Tensions
Wealthy Asians Worry About Potential Trump Impact
Yo, people who have a ton of cash have traditionally been riding high on investing in the US market. It's like the bomb dot com, with the US financial markets being the biggest and most hyped in the world. Plus, the dollar is basically the king of currencies, politics were chill, and the law was all about accountability.
But, according to some reports from Bloomberg, it seems things are changing. Some mega-rich families in Asia are starting to scale back their investments in the US. They're talking to ten family offices, those being companies that manage large private assets independently of banks. One of these offices, managing assets for some Chinese billionaires, has even packed up and moved its dough from the US to Asia.
So, what gives? The reason these families are spooked is mainly due to the risk of an economic downturn. Clifford Ng, a managing partner at the Hong Kong law firm Zhong Lun, who deals with the mega-rich, confirmed this shift and pins the blame on Donald Trump. "Many in the Chinese business world, like businesses in other countries, were expecting Trump the dealmaker, not Trump the anti-trade hawk," Ng told Bloomberg.
Similar reports come from Henry Hau. He's the honcho at the Hong Kong-based Infinity Family Office. Hau says there are some families who are considering partially divesting from US investments. These families have weathered the storm of the dot-com bubble, the Asian financial crisis, and the global crisis of 2008 without losing faith in US investments. But now, some are talking about moving 20 to 30 percent of their US portfolios to China and Europe.
It's unclear how far this shift will go. US assets still make up a big chunk of many portfolios. Some family offices told Bloomberg they're going to hold tight rather than sell. Three bigwigs even described the US as a tough-to-replace investment haven. Even if that's the case, US stocks still seem attractive to one of them.
Sources: ntv.de, jki
- Donald Trump
- Investors
- Wealth
- Trade Conflicts
Insights:1. Investor Attitude: There's a growing trend of investors feeling uneasy about the US market, and it's possible that wealthy Asian investors might be following suit due to concerns over trade conflicts and economic uncertainty caused by the Trump administration.2. Regional Resilience: Asian markets have demonstrated resilience in the face of US trade tensions. This could prompt rich Asian investors to consider diversifying their portfolios beyond the US, or even shifting investments to more stable or hyped markets within Asia.3. Long-Term Perspective: Despite the current uncertainty, US stocks still maintain their allure for some investors, indicating a willingness to weather the storm and wait for clarity in the market conditions before making drastic changes to their investments.
- Despite the US market's reputation for being the biggest and most hyped financial market in the world, a growing number of investors, including wealthy Asian ones, are scaling back their investments due to trade tensions and the risk of an economic downturn.
- Clifford Ng, a managing partner at the Hong Kong law firm Zhong Lun, has confirmed this shift in investments, blaming it on the Trump administration's anti-trade policies and the uncertainty they create.
- Some of these Asian investors, who have weathered previous economic storms such as the dot-com bubble, the Asian financial crisis, and the global crisis of 2008, are now considering moving 20 to 30 percent of their US portfolios to China and Europe.
- However, some family offices are choosing to hold onto their US assets, viewing the US as a tough-to-replace investment haven, despite the current trade conflicts.
- The trend of wealthy Asian investors reconsidering their investments in the US markets over trade tensions serves as a reminder of the long-term impact of political decisions on business and finance.
