In the face of political and economical uncertainty caused by Donald Trump's administration, Asian wealthiest investors are reviewing their investment strategies. In search of stability, they increasingly turn distant from American stock and dollar, turning towards gold, yen and euro. In the planet of finance, where predictability is key, China strengthens its position as a safe haven.
Trump, duties and marketplace shocks
From the beginning of Donald Trump's second term, his decisions – from aggressive duties to questioning the independency of the national Reserve – have caused confusion in the global economy. As private bankers and financial advisors note, Asian investors with advanced net value (UHNWI) are increasingly afraid of slowing down in the US.
– “Some customers fear that the era of neoliberalism and free trade is coming to an end, replaced by protectionism and economical patriotism” – says Hideyuki Watarai, Director-General of the Tokyo Advisory Company Family Office Design. His customers, including the owners of large companies and real property tycoons, are considering limiting vulnerability to the US market.
Escape from the dollar – gold, yen and euro at price
In consequence to the increase in volatility, investors search collateral. Gold price reached evidence level $3500 an ounceand the yen increased to 139 JPY/USD, reaching a seven-month maximum.
– “Gold is simply a safeguard against falling trust in American bonds. We can besides see an increase in interest in the euro and the yen" – explains Ulysses Lau, Head of Investment in J.P. Morgan Private Bank Hong Kong.
Predictability – key Chinese value
While the US shakes the markets with unexpected decisions, China consistently offers stability. As he notes Shravan Kumar Sreenivasula au Avendus, Indian investors, though not withdrawing from local assets, reduce their commitment to the US after years of advanced profits.
– “Unlike the US, where economical policy changes with administration, China has been providing a long-term imagination for improvement for decades. This attracts capital” – says anonymously 1 of Singapore's private bankers.
Will the dollar lose its position?
Still, a complete departure from the dollar seems unlikely. – “There is presently no currency to replace it” – admits Watarai. However, the trend is clear: in the planet of investment predictability is simply a goldweightand China is making it better.
Source:
Asia Nikkei – “Ultra-wealthy Asians rethink US stock exceptionalism amid Trump turmoil” (28.04.2025)
Leszek B. Glass
Email: [email protected]
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