Asias Rich Pivot to Gold, Crypto, and China: UBS Reports
- The co-head further stated that volatility is undoubtedly here to stay, urging clients to rebalance toward perceived safe havens.
- Recently, a Galaxy Digital expert said that Bitcoin is being seen as a virtual store of value, mentioning growing interest from institutions.
As per the Swiss multinational investment bank, UBS Group, the high-net-worth clients in Asia are slowly shifting away from US dollar-based investments and preferring gold, cryptocurrencies, and Chinese assets.
The co-head of wealth management for Asia of the Swiss bank, Amy Lo, stated that Gold is getting very popular in the New Voices event of Bloomberg, organized in Hong Kong on May 13.
She further threw a light on the prominent reason driving this shift and mentioned geopolitical uncertainity and consistent market volatility. Also, the investors are looking for wider exposure to alternative asset such as crypto, gold and others.
Market Volatility Spurs Demand for Safe Havens
The co-head further stated that volatility is undoubtedly here to stay, urging clients to rebalance toward perceived safe havens and growth opportunities in new areas. After a long period of suppressed interest, China is also regaining momentum among the ultra-wealthy.
She mentioned that clients who have so far avoided exposure to China are now interested in investment opportunities. The benchmark index, Hong Kong, consisting of Chinese firms, came as one of the worlds top performers last year, further igniting interest.
The latest fund manager survey of Bank of America has also shown that global fund managers have suppressed their exposure to the US dollar this month, witnessing the biggest underweight position in 19 years.
The head of Investment Management Services at Morgan Stanley Private Wealth Management Asia, Christina Au-Yeung, revealed that the latest tariffs reconciliation between the US and China has renewed investor confidence.
She further revealed that we are witnessing an appearance of actually interesting themes coming back out in China. Au-Yeung also highlighted the increasing risk-awareness mindset among the wealthiest investors of clients.
The company now suggests a balanced portfolio accumulation, consisting of 40% fixed income, 40% equities, 15% alternatives, and the remainder in cash or equivalents. Recently, a Galaxy Digital expert said that Bitcoin is being seen as a virtual store of value, mentioning growing interest from institutions.
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Read more: https://thenewscrypto.com/asias-rich-pivot-to-gold-crypto-and-china-ubs-reports/
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