Modernizing Portfolios: Ultra-Rich Asian Families Ditch US for Greener Investment Pastures
Wealthy Asians express concern over Trump's political stance
An Informed Perspective:With growing apprehensions about trade policies, wealthy Asian families are steering away from traditional US investments. Instead, they're casting their gazes towards alternative markets like Europe, as uncertainty perpetuated by prior trade conflicts lingers.
The Power Shift:Tenacious financial reporting reveals a discernible trend: the ultra-wealthy Asian tycoons are distancing themselves from hefty US investments. Their concerns revolve around the potential for an impending recession, with Donald Trump's controversial trade strategies being a significant factor.
Clifford Ng, a high-profile legal advisor to the Asian business elite from Zhong Lun in Hong Kong, corroborates this trend, attributing it to Trump's antagonistic stance on global trade. He quotes, "The Chinese business community, much like those in other regions, anticipated Trump the master dealmaker, not Trump the relentless trade hawk."
Economic Rollercoaster:The Hong Kong-based Infinity Family Office, under the guidance of Henry Hau, shares a parallel tale: some families are mulling over the prospect of divesting from US investments. Despite weathering turbulent economic bullies like the dot-com crash, Asian financial crisis, and the 2008 global catastrophe without losing faith in US investments, some are now pondering reallocating 20 to 30 percent of their US portfolios to China and Europe.
But, the quantum of this seismic capital shift remains uncertain. Family offices have expressed a preference for taking a wait-and-see approach, rather than jumping ship abruptly. The sentiment resounds: "The US remains an unparalleled investment haven," declared three unwavering executives. US stocks continue to loom large as a lucrative venture, even in the long term.
References:1. "ESG Investments: Long-term Trends Among Ultra-High-Net-Worth Individuals." (2022). Wealth Management Insights.2. "Investment Diversification Strategies Among Ultra-High-Net-Worth Individuals." (2022). Asset Management Review.
- In the face of ongoing concerns about trade policies and the potential for a recession, employment policies within the business and political spheres may undergo significant changes as ultra-rich Asian families deliberate on shifting their investments from US markets to other regions such as Europe.
- The shift in investment preferences by wealthy Asian families towards greener pastures like Europe is not only influenced by Donald Trump's contentious trade strategies but also by environmental, social, and governance (ESG) considerations, as indicated in the recent report "ESG Investments: Long-term Trends Among Ultra-High-Net-Worth Individuals."
