US Assets Face Value Erosion, Pictet Warns Investors

A leading private bank, Pictet Wealth Management, has issued a warning to investors about the potential decline in value of US assets over the next decade.

The bank's chief investment officer in Asia, Kelvin Tay, said that 'structurally higher inflation and government deficits reinforce the clear takeaway: buy assets that governments cannot print.'

Tay noted that some clients had recently asked about currency hedging, a topic that was previously rarely discussed.

Pictet projects that the US dollar will continue to depreciate over the next decade, with potential exchange rates of 5.97 yuan per US$1 and US$1.30 per €1.

The current exchange rates stand at 6.74 yuan per US$1 and US$1.16 per €1.