Priyanka Tiwari
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The ongoing U.S.-China trade war has sparked major shifts in investment strategies among America’s wealthiest investors. Triggered by former President Donald Trump's aggressive tariff proposals, U.S. stock markets have seen a loss of $7.7 trillion before partially recovering. This turmoil has led to increased caution, diversified holdings, and a reconsideration of U.S.-focused portfolios.
From Risk Exposure to Cash: Investors Reduce Vulnerability
In Warwick, Rhode Island, businessman Chris Ciunci moved away from stocks impacted by tariffs, including Nike and Applied Materials.
Ciunci shifted more of his portfolio into cash, citing inflation concerns and political unpredictability.
“My portfolio feels like it’s being driven by one person,” Ciunci said, expressing concern over policy volatility.
Holding Steady: Long-Term Focus Still Prevails for Some
Doug Johnson, a former private banker in Denver, remained calm during the market slide.
He maintained a diversified portfolio and focused on long-term gains, continuing to explore global investment options while staying mostly U.S.-centric.
Johnson cited the U.S. legal system and market liquidity as key advantages.
Global Diversification Gains Popularity
Wealth advisers like Rich Scarinci of Partners Capital and Monica DiCenso of JPMorgan noted increasing client interest in non-U.S. markets.
Investors are exploring opportunities in Europe, Japan, and foreign currencies, shifting away from reliance on U.S. equities.
Confident in the Dip: Some Double Down on U.S. Stocks
Not all investors retreated. Ken Wagnon, an 86-year-old Trump supporter from Kansas, increased his U.S. stock holdings during the market dip.
Motivated by Trump’s strong stance on trade, Wagnon believed the sell-off presented a chance to buy undervalued assets.
Balancing National Loyalty With Financial Security
As political risks grow, some ultra-wealthy families are questioning their long-term investment strategies.
Balancing patriotism with portfolio preservation is now a central theme in family office discussions.
Looking Ahead: Stay Local or Go Global?
UBS advised clients to stay invested, highlighting that the S&P 500 has historically rebounded strongly after major drops.
However, many investors are now focused on broader concerns—chiefly, whether the U.S. can maintain its role as a global financial leader.
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