LCI Strategic Asset Allocation: Reduction of US Investments

In just a month and a half, Donald Trump has managed to upend the global order. Economic and military threats against allies, the adoption of Russian propaganda rhetoric, and the erosion of democratic institutions have significantly shaken international confidence in the United States.

Although resistance is growing within the country, approximately 45% of Americans still support his policies. Trust in the US is eroding—one example is Switzerland, where Parliament will soon decide whether to revoke the mandate of the US custodian managing the AHV compensation fund. As geopolitical decisions become increasingly unpredictable, the risk of foreign assets being subjected to political interests also rises.

La Côte Invest decided as early as March to adjust its strategic asset allocation accordingly:

• US equities will henceforth be weighted at a 50% discount to their market capitalization, reducing their allocation to 30%.
• At the same time, a 10% allocation to gold is being targeted.

These adjustments reflect our commitment to appropriately accounting for geopolitical risks in portfolio construction and ensuring long-term stability.