UBS has observed its affluent clients pulling away from U.S.-dollar assets due to rising trade tensions and economic uncertainties. Instead, they are increasing investments in gold and crypto, viewing Bitcoin and Ethereum as safer, alternative assets.
Investors are regaining confidence in the Chinese market thanks to improved stock performances and a better trade environment, leading to a significant shift in their allocations back to Chinese assets. Recent reductions in tariffs have further enhanced this sentiment.
UBS and Morgan Stanley are advising clients to diversify portfolios by employing structured asset allocation models. This includes a recommended mix of 40% fixed income, 40% equities, and 15% alternatives, with 5% in cash to buffer against market downturns.
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