According to UBS, wealthy clients withdraw money from US dollar assets, invest in gold crypto and the Chinese market adds trade tensions and a volatile global economy.
Investors felt that for many years, the country’s strong economy, stable currency and deep financial markets could keep most of its wealth in US-based assets. Still, concerns about recent trade disputes, new tariffs and long-term strength of the dollar have crushed their confidence.
UBS clients reduce US dollar exposure as volatility increases
Amy LO, co-head of USB’s Asian wealth management, said the company’s wealthy clients are pulling away from their US dollar investments as they feel uneasy about putting more money into the US dollar amid global economic uncertainty and ongoing trade tensions between the US and China.
Amy Law also said that while most clients are not tied to a single government or currency, others put cash in cryptocurrencies like Bitcoin and Ethereum.
The strong advocate for pro-crypto lawyer and XRP holder John Deaton is I’ll post it on x “We have officially reached a much more risky point where there is zero exposure to cryptos than allocating a small portion of your net worth.”
Clients are also looking for opportunities to provide growth without resorting solely to the US economy, so they focus on managing risk as well as chasing high returns. UBS and other asset management companies said these investors employ a structured asset allocation model that poses more evenly risky.
For example, Morgan Stanley recommends splitting 40-40-15 with alternative investments such as 40% of assets, with fixed income bonds and 40% and 15% with alternative investments such as private equity and hedge funds.
Investors regain trust in China and shift allocations
Due to poor performance, strict regulations and continued tensions with the US, many wealthy investors who have shunned the Chinese market for the past few years have slowly moved their money to Chinese assets due to stock performance, a more aggressive trading environment and innovations from Chinese companies.
Hong Kong stock market, Hang Transmission Index (HSI)one of the world’s most performant stock indexes for 2025, Amy Le explains that after years of avoiding ties with China, his clients are asking directly about the country’s investment opportunities. This shift shows how quickly investor sentiment changes when signs of progress and stability appear.
The recent tariff ceasefire between the US and China has helped to cool the tensions of several trade wars affecting global markets. The US has agreed to cut tariffs on most Chinese imports from 145% to 30% for the 90-day period, while China cut its duties from 125% to 10%, and remove some of the measures set for 2018.
Private Wealth Management Experts Morgan Stanley The recent trade agreement between China and the US believes that creating new growth opportunities for both countries and bringing investors’ profits back to China will be a recovery in US growth stocks.
Morgan Stanley expects to attract 7% to 8% clients at annual return rates over the next 7-10 years, but Christina warns that achieving these returns will be more difficult due to unstable markets. This is why clients are currently rethinking the extent to which risk they are taking, how their portfolio is balanced, and the role that each type of investment will help them achieve their financial goals.
