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90-day tariff reprieve offering temporary respite from

turmoil

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Investors already seeking hedging strategies,

profit-taking

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Some investors trimming US exposure, adding in Europe,

Asia

By Iain Withers and Sinead Cruise

LONDON, May 21 (Reuters) - Asset managers at Goldman

Sachs ( GS ) and JPMorgan ( JPM ) are fielding more investor

enquiries about the resilience of U.S. assets and helping

clients move more money to Europe ahead of more potential

trade-related market turmoil, executives said.

The clock is ticking on President Donald Trump's 90-day

pause on "reciprocal" tariffs that threaten to upend global

trading ties and deepen the trade conflict between the world's

biggest superpowers.

U.S. assets plummeted in April after economists slashed odds

on the likelihood of a U.S. recession, leading some investors to

seek refuge in perceived safe havens, such as gold and

relatively undervalued European stocks and bonds, executives

said during separate media events held in London this week.

Markets have rallied back since Trump eased many of the

tariffs but that has only partially restored confidence,

executives said.

Some investors have begun hedging the dollar, taking profits

on U.S. companies, allocating more capital to Europe and Asia,

and holding more cash, they said.

"I would say the average client is looking to maybe trim

(U.S.) exposure, just a little bit, put a little bit more into

Europe, maybe a little bit more into Asia," said Matt Gibson,

head of the client solutions group at Goldman Sachs Asset

Management.

"Everyone is thinking. Some are acting. But nobody that I

have seen is full-out exiting the U.S.," Gibson said, flagging

client queries on whether a U.S. stock market boom led by the

so-called Magnificent 7 of top tech stocks had "run its course".

Investors in Europe have flipped their preference from U.S.

to European-focused exchange-traded funds (ETFs) so far this

year, according to Morningstar data shared with Reuters, as they

diversified portfolios amid unpredictable U.S. policymaking.

European equity ETFs have pulled in 34 billion euros ($38.6

billion) of additional cash over the year to May 16, four times

the 8.2 billion euros put in U.S. equity funds. In 2024, net

flows into U.S. equity funds in Europe had dominated by a ratio

of more than 8:1 over locally-focused products.

Executives at JPMorgan Asset Management also said they had

seen stronger client interest in Europe, including investments

in private assets, as countries, such as Germany unveiled bigger

spending plans.

"We are certainly getting more questions about investing in

Europe," said Brandon Robinson, deputy global head of private

markets.

Goldman Sachs Asset Management has been discussing with

clients how to put asset and currency hedges back into

portfolios to mitigate risks, multi-asset co-Chief Investment

Officer Alexandra Wilson-Elizondo said.

($1 = 0.8820 euros)