Wealthy investors are trimming their exposure to US dollar assets. They’re worried about fresh tariffs and trade friction. Confidence in the greenback’s long‑term strength is sliding.
Eroding Trust In The Dollar
According to UBS, its high‑net‑worth clients in Asia have started to pull money out of assets tied to the US dollar. Amy Lo, co‑head of wealth management for Asia at UBS, says many feel uneasy about holding too much of their net worth in one currency.
Years of steady growth and a deep financial market haven’t been enough to keep them fully invested. New tariffs and trade disputes have shaken their faith.
Gold And Crypto Draw Investors
Based on reports from UBS, gold is back in fashion. It’s an old‑school hedge that isn’t tied to any single government or bank. Prices have climbed as clients buy bullion to spread risk. At the same time, cryptocurrencies like Bitcoin and Ethereum are getting a fresh look.
John Deaton, a pro‑crypto lawyer, posted on X that it’s now “far more riskier to have zero exposure to crypto” than it is to allocate a small percentage of your net worth to it. Some clients are taking a tiny slice of their portfolios and placing it into digital coins.
We have officially reached the point where it is far more riskier to have zero exposure to Crypto than it is to allocate a small percentage of your net worth to it. I felt that way 5 years ago but TradFi is now waking up to the realization. https://t.co/yswNhbRPhA
— John E Deaton (@JohnEDeaton1) May 13, 2025
Chinese Markets Regain Appeal
Investors who avoided China for years are returning. The Hang Seng Index has been one of the best‑performing stock indexes in the world in 2025. That jump is enough to draw fresh money.
A 90‑day tariff truce has helped, too. The US cut most duties on Chinese imports from 145% to 30%, while China pushed its rates down from 125% to 10%. Those moves have eased fears and reminded people of China’s growth potential.
Balanced Portfolios Remain Popular
Wealth managers aren’t telling clients to go all in on any single market. Instead, they’re sticking with tried‑and‑true splits. Morgan Stanley suggests a mix of 40% bonds, 40% stocks, 15% alternative investments like private equity or hedge funds, and 5% cash or cash‑like assets.
That kind of structure aims to smooth out big swings. Morgan Stanley also notes that high‑net‑worth clients could see 7% to 8% in annual returns over the next seven to 10 years, but warns that volatile markets make those targets harder to hit.
A Cautious Yet Open‑Minded Stance
Investors today are balancing caution with curiosity. They want to protect what they have, but they also don’t want to miss out on growth.
Spreading money across currencies, commodities, digital assets, and regions feels like the most sensible path. Still, gold can stall, crypto can dip, and Chinese markets can tighten up overnight.
That’s why some are keeping a small cash buffer on hand. In this climate, a flexible, well‑balanced approach looks like the smartest play.
Featured image from Gemini Imagen, chart from TradingView