The post Asian Millionaires Shift to Crypto & Gold Amid Dollar Concerns: UBS Report appeared on BitcoinEthereumNews.com.
Asia’s richest investors are now cutting back U.S. dollar exposure, turning toward gold and crypto instead. Chinese assets and Bitcoin are gaining traction fast as portfolios shift from old safe bets to newer ones. A noticeable change is taking place among Asia’s high-net-worth investors as UBS Group has reported decreasing demand for U.S. dollar-linked assets. Instead, Chinese markets and gold and cryptocurrencies are attracting more interest. Geopolitical tensions and the current market volatility have spurred the trend of readjustment across the region. UBS’s co-head of wealth management for Asia, Amy Lo, told Bloomberg on May 13 at the New Voices event in Hong Kong that “gold is getting very popular.” Her statement is a sign of the region’s shift in emphasis as clients increasingly put more faith in what they perceive as stronger or more promising assets in the face of continued financial volatility. There is a more pronounced preference for diversification. Traditional portfolios that had a high reliance on U.S. assets are being revamped. Investment is moving across alternative classes of currency such as cryptocurrencies as well as commodities. Dollar Sentiment Weakens After 19-Year Shift As per Bank of America’s most recent fund manager survey, May witnessed the biggest decrease in fund managers’ U.S. dollar exposure in almost twenty years. It is a sign of a general sentiment shifting its interests away from American financial tools towards other emerging trends in the likes of Asia. It is also favorable for Chinese investments as there is a newfound optimism after a temporary trade ceasefire between the U.S. and China. May 11 saw both the countries agreeing on relaxing import tariffs — the U.S. reducing tariffs on Chinese imports from 145% to 30%, and China from 125% to 10%. Christina Au-Yeung of Morgan Stanley Private Wealth Management Asia explained that there…