Reduce your exposure to US assets before they lose value, Pictet warns investors

Pictet, a leading private bank, is warning investors to reduce their exposure to US assets, specifically US Treasuries and the US dollar, as they expect these to lose value over the next decade. This warning is based on concerns about tech-driven inflation and high government deficits. The bank believes that investing in commodities and equities in emerging markets may offer better long-term returns, especially given the expected volatility in global inflation due to factors like the AI boom and decarbonisation efforts.

Why it matters

Pictet warns of potential losses in US assets due to tech-driven inflation and high government deficits. This could lead to a decrease in investor confidence and a subsequent decline in asset values.

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