Wealthy investors across Asia are shifting away from the U.S. dollar, turning their attention to gold, Bitcoin, and Chinese equities, according to UBS.
Amy Lo, Co-Head of UBS Wealth Management Asia, said during Bloomberg’s New Voices event in Hong Kong that “gold is becoming very popular” as geopolitical tensions and persistent market volatility drive the shift.
🌀 “Volatility is here to stay,” Lo stated, pushing investors toward safe-haven assets and growth opportunities in new regions.
📈 Chinese stocks, especially those in Hong Kong’s top-performing index, are regaining favor after years of low interest. UBS notes a resurgence in client inquiries about Chinese investment opportunities.
📉 A recent Bank of America survey shows global fund managers have reduced their exposure to the dollar to its lowest level in 19 years.
🇺🇸🇨🇳 The U.S.-China tariff truce is also boosting sentiment. On May 11, both countries agreed to reduce tariffs—U.S. dropping from 145% to 30% and China cutting from 125% to 10%.
💼 Morgan Stanley now recommends balanced portfolios:
40% fixed income
40% equities
15% alternative assets
5% cash equivalents
💰 Meanwhile, Bitcoin is gaining ground as a store of value. Galaxy Digital and BlackRock both highlight growing institutional, ETF, and even government interest in Bitcoin as a reserve asset.
Jay Jacobs of BlackRock notes that countries are actively moving away from USD reserves, opting instead for gold and BTC.
Is the U.S. dollar losing its dominance? Or is this just another cycle in a volatile market?
Drop your thoughts in the comments!
