Wealthy investors are re-evaluating their exposure to the US and considering renewed opportunities in Europe and Asia amid rising tariff and geopolitical risks, according to Marco Pagliara, Deutsche Bank’s head of private banking for emerging markets.
Conversations around diversification and hedging have grown since talk of US tariffs became reality over the past two months, Pagliara said in an interview with the Post on Tuesday.
“Recent geopolitical tensions and tariff narratives have caused volatility to spike, leading to a more conservative attitude among private clients,” said Pagliara, who handles Asia, the Middle East, Africa and Latin America for the German lender.
He compared the situation with the first two months of the year when volatility created a “sweet spot” for private clients to invest, driven by optimism in equity markets.
The US has created a climate of uncertainty and volatility, prompting a re-evaluation of traditional asset allocations among ultra-high-net-worth individuals (UHNWIs) and family offices, which used to see US capital markets as a consistent source of returns with limited risks, he said.
“The last few weeks have showcased that US market exposure can also introduce volatility,” Pagliara said. The S&P 500 Index has dropped 3.8 per cent this month, while the Nasdaq 100 Index has retreated 2.3 per cent.
