Europe’s biggest asset manager, Amundi, has now decided to turn cautious by reducing its exposure to the volatile US dollar. The firm has decided to reduce its allocation towards USD, as the leading financial behemoth is worried about US monetary policies that may end up pushing the US dollar off course.
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Amundi Cuts Exposure Towards US Dollar
Per the latest Financial Times report, Europe’s biggest asset manager, with $2.6T in assets under management (AUM), has decided to cut its exposure towards the US dollar. Moreover, Amundi’s Valerie Baudson is also giving the same advice to her clients, adding how her clients should also pivot away from the volatile greenback, as US monetary and economic policies continue to pose a greater risk to the dollar. The asset manager is now running towards European and emerging markets to stabilize its momentum. “Amundi has been diversifying a lot and has been advising [clients] to diversify a lot . . . over the last 12-15 months, and is going on advising its clients to diversify their positions for the year to come,” Baudson said in an interview on Tuesday.
Baudson later shared how international investors have been lately protecting themselves by buying gold, helping the asset rise high on the radar.
“What we saw after was a will to diversify from US assets in order to diversify from the dollar, which was . . . overinvested worldwide,” she added.
If Not Dollar Then Where Should One Invest Right Now?
Per a recent interview with Ray Dalio, the economist has warned of a potential monetary evolution, where investors must allocate 5% to 15% of their investments to gold.
“Ray Dalio explains how you should structure your portfolio. You should always have 5–15% allocated to gold under current circumstances, or even more. We’re in the middle of a wonderful technological revolution, where not only the hyper-scalers will benefit, but also the companies using this technology. His portfolio? A well-diversified mix of new tech and gold.”
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