Europe’s largest asset manager, Amundi, which manages $2.6 trillion, has cut its exposure to the US dollar. In a recent interview, CEO Valerie Baudson said in an interview (said in an interview) the firm is shifting into European and emerging markets because of concern over US monetary policy and dollar volatility.
Baudson advised clients to diversify and protect holdings, and she noted investor interest in gold. (Ed. note: international investors have been buying gold as a protective asset.) She told reporters, “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.”
Economist Ray Dalio has made a related recommendation on gold allocation. He wrote on Twitter that investors should hold “5–15% allocated to gold—under current circumstances, even more.” (explains on Twitter)
Amundi’s move reduces dollar weightings and redirects capital toward Europe and emerging markets. The firm and other investors cite policy uncertainty in the United States as the principal reason for the shift.
