Long-term U.S. Treasuries, stocks, and the dollar are all falling on Tuesday, although UBS (UBS) CEO Sergio Ermotti has cautioned that selling American assets is “quite a dangerous bet.”
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“Diversifying away from America is impossible,” Ermotti said in an interview with Bloomberg Television at the World Economic Forum in Davos, Switzerland. “The US is the strongest economy in the world.”
UBS Sees Strong U.S. Potential amid Tariff Tensions
Ermotti added that both innovation and wealth continue to grow rapidly in the country, which have factored into UBS’s planned wealth-management expansion in the U.S.
U.S. assets have faced pressure in recent days after President Trump announced tariffs on eight European countries that will remain in place until the U.S. secures a deal to acquire Greenland. The European Union is currently considering countermeasures, including a $108 billion tariff package on U.S. goods.