Conglomerate Royal Group Shifts Portfolio towards Short Term US Treasuries in Response to Economic Slowdown
The Royal Group, an influential conglomerate led by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates National Security Adviser, oversees one of the world’s largest family fortunes through an extensive network of subsidiary companies.
Amid mounting concerns about a global economic slowdown, the Royal Group has adopted a more cautious stance towards equities since the beginning of the year. It has reallocated a significant portion of its portfolio into short-term US Treasuries, aiming to mitigate potential risks.
In addition, the Royal Group has decided to increase its investments in commodities and cryptocurrency. With apprehensions regarding the impact of the economic downturn, the conglomerate plans to allocate up to $10 billion towards US and European stocks, as well as other assets that may be affected by these concerns. Although the specific stocks or sectors that the Royal Group is betting against remain undisclosed, company officials have chosen not to provide comments on the matter.
It is worth noting that Sheikh Tahnoon’s company has recently focused on investments in developing nations. With many markets worldwide experiencing a scarcity of funds, the Royal Group has emerged as a significant player in the global finance landscape.
Considering the looming credit crunch and the rise in oil prices, which pose threats to economic growth while potentially triggering inflation, Bloomberg Economics predicts that the United States may enter a recession in July, two months earlier than originally anticipated.
Despite these circumstances, the Royal Group intends to increase its exposure to the US market once valuations improve and the Federal Reserve indicates its readiness to reduce interest rates. The conglomerate has revised its list of recommended stocks in the US market and has already realized profits from some of its investments in late 2018.