Investors should diversify and pay closer attention to alternative assets amid stock market volatility caused by the tariff war, according to experts.
As US President Donald Trump acts on his campaign promises, including tariff increases that have heightened tensions between the US and its global trading partners, especially China, investment specialists are warning against making rash decisions given the markets’ unpredictability.
“This is a timely opportunity to diversify into alternative [assets] such as private credit, private equity and hedge funds,” said Samuel Rhee, co-founder and chairman of Endowus, a Singapore-based investment platform.
He added that private credit funds offer stability, as their assets were less correlated to market volatility, allowing for more secure long-term investments.
02:40
China raises tariffs on US goods to 125% as Xi calls on EU to resist ‘unilateral bullying’
China raises tariffs on US goods to 125% as Xi calls on EU to resist ‘unilateral bullying’
Trump fired the first salvo in the current trade war, announcing so-called reciprocal tariffs on America’s trading partners on April 2, including a 34 per cent levy on China, which has run a massive trade surplus with the US. The back-and-forth retaliation between Washington and Beijing has pushed US tariffs on Chinese goods to 145 per cent and on US exports to the mainland to 125 per cent.
These developments saw Hong Kong’s benchmark stock index sink 13.2 per cent on April 6, its worst showing since the Asian financial crisis in October 1997. The Hang Seng Index eventually lost 8.5 per cent last week, the most in five years. Markets on the mainland and across the globe also slumped as a result of the trade war.
