A version of this article first appeared in CNBC’s Inner Wealth Newsletter, Robert Frank is a weekly guide for high-net-worth investors and consumers. Sign up to receive future versions directly to your inbox. Experts say that while home offices are proud of their long-term investments as their investments, tariff volatility and confusion about government policies this week are causing many to slow down their transactions. On Thursday alone, the S&P 500 fell 1.3%, with all three major averages so far in terms of tariffs in Mexico, Canada and China down about 3%. The home office and its consultants said they were not overly concerned about the market shift this week. No one sells stocks, and no one buys them at a lower price. Instead, many people have put a pause button on major investments or private transactions until they have a clearer view of the main policy direction. “Most families are on the verge of hanging, not making any massive bets, staying diversified and keeping liquid until they see things work,” said Michael Zeuner, managing partner at our home office. A home office CIO said they are conducting due diligence on a private company that operates in Mexico, “we just decided to stick with it until we know what the policy will be.” Although tariffs shock the market, high net worth investors can afford the storm in terms of living costs and swings in their portfolios. Charlie Garcia, founder of Centillieaires investment community R360, said super-wealthy investors have been preparing for tariffs, but have not made huge changes to their portfolio. “Because they are millionaires, the focus is on decades, not quarters,” Garcia said in an email to CNBC. “Nevertheless, we are making modest changes – not wholesale pivots, but recalibration.” Garcia said, for example, some members have increased their allocation to U.S. steel and aluminum producers through private equity or diversified materials funds. Deepak Puri, chief investment officer of the Americas of Deutsche Bank’s private banking division, told CNBC that the bank’s questions include concerns about the upcoming bear market, and Deutsche Bank does not expect the bank to have questions about safe trade such as bonds and gold. Jason Katz, senior portfolio manager at UBS, said that while most customers are quite calm about the tariffs, he noticed the party routes differently. “One person’s politics is sure to be involved in the questions we receive,” said a private wealth advisor. Elliot Dornbusch, founder and CEO of CV Advisors, said that this uncertainty is more tolerant than others for some super-rich clients. The Miami-based company has $13 billion in assets and many customers with businesses in Latin America are affected by tariffs. “I think when it comes to portfolio building, we’re good, and our clients aren’t really worried about that,” he said. “They’re really more concerned about the future. What’s going to happen? We don’t know. I mean, we have to take it every day.”
In a bird’s-eye view, transport containers were organized at the Port of Houston, Houston, Texas on February 10, 2025.
Brandon Bell | Getty Images
A version of this article first appeared in CNBC’s Inner Wealth Newsletter, Robert Frank is a weekly guide for high-net-worth investors and consumers. Sign up To receive future versions, go directly to your inbox.
Experts say that while home offices are proud of their long-term investments as they invest, tariff volatility and chaos in government policies this week are causing many to slow down their transactions.
