Pictet Wealth Management advises reducing exposure to US assets due to potential value erosion.
Key facts
- •Pictet Wealth Management warns investors to reduce exposure to US Treasuries and the US dollar
- •Tech-driven inflation and high government deficits may erode the value of US assets
- •Shifting to commodities and equities in emerging markets may offer better long-term returns
- •Global inflation is expected to remain volatile due to the AI boom and decarbonisation efforts
- •The US dollar is projected to depreciate over the next decade
Pictet Wealth Management has warned investors to reduce their exposure to US Treasuries and the US dollar over the next decade. The bank cites tech-driven inflation and high government deficits as factors that could erode their value.
By the numbers
Investment Strategy
Shifting to commodities and equities in emerging markets may offer a greater chance of long-term returns, according to Pictet. Global inflation is expected to remain volatile and sticky for years due to factors including the artificial intelligence boom and decarbonisation efforts.
Currency Projections
Pictet projects that the US dollar will continue to depreciate over the next decade. The exchange rate could potentially fall to 5.97 yuan per US$1 and US$1.30 per €1, compared to current rates of 6.74 yuan per US$1 and US$1.16 per €1.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by SCMP Business.
