As seen in response to policy changes and economic fear in the markets – including US President Donald Trump’s sweeping tariff announcement, thereafter one week there is a surprising thing – a group of investors stopped to a large extent: rich.
While institutional investors and hedge funds scrambled for de-pris, high-Net-World individuals opposed most of the panic buttons. Instead, many saw the opportunity. Many top money management officials say their customers remain calm, planned some tax, and in some cases, even bought a dip.
This time the major difference, they say: unlike the market recession of 2008 or 2020, rich investors are running in this unrest with heavy cash cushions and a long -term perspective.
Pamela Luceena, head of the family office solutions at the Northern Trust, said that he directed the customers through a storm with his “three PS”: not to panic, not predict, and attach to the plan.
Many of his customers kept the portfolio reserve – separate for time like cash or liquid assets.
“We are asking them to plan volatility forever, which is unavoidable,” Ms. Luceena told NBC News. “They can draw from those risk-stop assets to fund their lifestyle.”
Ms. Lucina said that some customers who had recently sold businesses started to invest in the market selectively. But the big focus was on planning.
Three main strategies brought:
GRATS: Customers used low evaluation to fund the grant-retained annuity trusts, possibly passed the heirs on more money.
Roth conversion: Fund to Roth Ira in low tax valuration.
Tax-loss harvesting: Selling underperforming stock to offset profit elsewhere.
“When we were able to turn the conversation more to the opportunities of the plan, people feel more under control,” he said.
Pathstone CEO Matthew Flasing said, “We are less afraid of our customers right now, ‘Should we buy?” ,
Family office customers – value of $ 100 million or more – there were “layering” in the market. Structured products and private market opportunities were also in demand.
“In such times, it is our ability to find asymmetric opportunities … the investors who see us,” he said.
Nevertheless, he warned that a boom interest in private credit could be a backfire. “I think a lot of deals in private credit are extremely covenant,” Mr. Flassing warned.
John Mathews, head of private money management for the US in UBS, stated that the customer spirit was divided with political lines and shaped by emotional reactions to the policy – especially Trump’s economic strategies.
Mr. Mathews said, “Our job is to get emotions out of it and level-set.” “Most of the time we are psychologists.”
He said that many UBS customers had already trimmed the posts in January, which estimated some instability of 2025.
He said, “There are very dry powder right now.” “Some were really rich customers thinking [in January]’I earned a lot of money … Why not take profit now?’ ,
That precaution paid. When Dow scored 2,200 points last Friday, customers started shopping.
“Friday afternoon, we saw a lot of shopping,” said Mr. Mathews. “Customers were asking if they should buy personal stock … or just proceed and buy the index.”
UBS clients are also turning to less unstable assets such as private equity and gold – the latter is still seen as a hedge despite a minor pullback.
According to Matthews, a customer said, “It is as if I wanted to buy a property that was $ 10 million and it becomes $ 8 million. It is cheap, and I still like it. But now it can go up to $ 5 million. So what can I do?”
In the wealthspier, Deputy Chief Investment Officer Dimitri Catsonson stated that large cash posts of customers – partially different sets for April tax payment – softened the recent damage shock. “This time has been helpful,” he said.
Small investors, especially $ 2 to $ $ 3 million or closer to retirement, were more clearly shaken. But the ultra-ride customer, closed in low liquid assets such as private equity with his money, was less reactive.
“Mainly people are venting,” said Mr. Catsonson. “They have a direct performance, and we are to hear.”