Trump’s tariff sends rich investors to Europe and Asia: “The world has changed in the past three months.”
Although President Donald Trump said that the aggressive tariff strategy, which was unveiled this week, will Make the markets “boom”, It has led to a defeat so far, as American stock markets have suffered from its worst week since March 2020 and more The pain is likely to be on the way. This sends wealthy investors to search for a refuge from the financial storm abroad.
The average tariff rate is even Higher than it was in the thirties“This means that there is no precedent in the modern era to predict the economic strike,” says Larry Adam, chief investment official in Raymond James. The American markets were defending this, and the analysts, including JPMorgan Warning bells ringing About a possible recession this year. the Excellence and exception From the United States is being interrogated now.
Investors interact accordingly. Anxiety about the effects of definitions and other movements by the Trump administration that can harm growth in the United States – such as its research efforts all over the country – high -net wealthy and family office investors are re -thinking about their positions here, at least in the short term.
John Ollen, ULIN & Co. Wealth Adviser, says Ulin & Co. Wealth Management: “We have seen increasing interest among the high -value family office agents in diversifying part of their wallets outside the United States.” “This trend is largely driven by concerns about the uncertainty in policy and potential economic or market turmoil.”
Of course, many of these wealthy investors already have large investments and real estate properties abroad, especially those born in another country or have double nationality somewhere. But the uncertainty that the American economy has now affected causes them to double the search for better growth opportunities and hedges abroad. The ULIN team is now more inclined to conservative Emile than the United States “to better move in the trade war than local stocks and markets.”
“For them, investment is internationally not only related to diversification, but it is a currency hedge and provides access to government bonds and stocks that may not be easily available in the American markets,” says Ullen.
In a media event on Thursday, Goldman Sachs representatives said they were closely watching Trump’s moves. Many of their high -ranking clients (UHNW) demand guidance, although they have not escaped from US shares yet. But non -American stocks outperformed performance so far this year, and the broader diversification in general is the goal of the company. However, the company is up to us in the long term given the country’s ability to innovate.
“There is still some belief that even if things look mysterious in the United States … the United States may end better than other countries on the other side of the definitions,” said Elizabeth Berton, an expert in Goldman Sachs.
However, many UHNW customers were considering transferring money from the United States even before the liberation day called Trump. Europe, for example, may be more attractive given the increase in defensive spending. In Asia, India attracts Goldman’s attention.
“For a long time, the United States has been long, especially a large cap, it was the right investment,” said Matt Gibson, the global president of the Goldman Customer Solutions Group. “Many of our customers are in the fourth quarter [2024]As they saw that the elections occur and so on, they started wondering whether maintaining this trade is the right thing to do. “
Introduction uncertainty pushes these talks to excessive.
“The world has changed in the past three months in a material way,” said Mark Nashman, head of the Asset and Resources Department in Goldman. “Our conversations with clients now include … How do we think about these definitions? How should we make us rethink how to allocate all our assets?”
This story was originally shown on Fortune.com
