This version of the article first appeared on CNBC’s Inside Wealth Newsletter. This is Robert Frank, a weekly guide to wealthy investors and consumers. Sign up to receive future editions directly in your inbox. Experts say family offices are pride in investing in the long term, but this week’s tariff volatility on government policy and disruptions over government policy have led many to delay transactions. The S&P 500 fell 1.3% on Thursday alone, with all three major averages down about 3% this week due to tariff implementation in Mexico, Canada and China. Family Office and its advisors say they are not very interested in the market movement this week. Many people didn’t sell shares accordingly, but they didn’t buy them at a low price. Instead, many people press the pause button for key investments or individual transactions until they have more clarity on the key policy direction. “Most families continue to bet on a large scale, diversify and liquidity until they see how things unfold,” said Michael Zeuner, managing partner at We Family Office. One Family Office CIO said he is doing due diligence at a private company operating in Mexico. Tariffs have shocked the market, but wealthy investors can afford to survive the storm in both the cost of living and the shaking of the portfolio. The ultra-wealthy investors are preparing for the tariff events since the election, but have not made any dramatic changes to their portfolio, according to Charlie Garcia, founder of R360, the investing community in Sentimaria. “They are Sentimerion-type so they focus on decades rather than quarters,” Garcia said in an email to CNBC. “Nevertheless, we’re making modest changes: recalibration, not wholesale pivots.” For example, according to Garcia, some members have increased allocations to US steel and aluminum producers through private equity or diverse material funds. Deepak Puri, America’s chief investment officer for Deutsche Bank’s private banking division, told CNBC that the bank’s questions range from concerns that Deutsche Bank is on the horizon that is not expected in questions about safe haven transactions like bonds and gold. Jason Katz, senior portfolio manager at UBS, said most clients are rather mild about the tariffs, but notice differences along the party line. “My politics definitely challenges the questions we are receiving,” said the private wealth advisor. Elliot Dornbusch, founder and CEO of CV Advisors, said this uncertainty is more difficult to tolerate than other clients. The Miami-based company, which has a $13 billion worth, has many clients from Latin American companies, and is affected by tariffs. “On the construction side of the portfolio, we’re doing well and I don’t think our clients are really worried about it,” he said. “They are really more concerned about the future. What’s coming? We don’t know. I mean, we need to take it every day.”
In the aerial view, a shipping container is organised on February 10, 2025 at the port of Houston Port, Houston, Texas.
Brandon Bell | Getty Images
This version of the article first appeared on CNBC’s Inside Wealth Newsletter. This is Robert Frank, a weekly guide to wealthy investors and consumers. Sign up to receive future editions directly in your inbox.
Experts say family offices are pride in investing in the long term, but this week’s tariff volatility on government policy and disruptions over government policy have led many to delay transactions.
