Core Insights - Family offices are shifting their investment strategies significantly due to the market turmoil caused by U.S. tariffs, leading to increased concerns over dollar depreciation and lowered return expectations [1][5]. Investment Strategy Changes - A survey of 141 North American family offices revealed that 52% of respondents believe cash and liquid assets will yield the best returns in the next 12 months, a stark contrast to the previous year's preference for growth stocks and defense industries [3]. - The focus has shifted from portfolio diversification in 2024 to enhancing liquidity, driven by market volatility and geopolitical tensions [5]. Concerns Over Dollar Depreciation - A significant 52% of respondents identified dollar depreciation as a major market risk, with the dollar having declined nearly 9% since the beginning of the year [6][8]. - The weakening dollar not only erodes the actual value of dollar-denominated assets but also impacts currency returns on cross-border investments, complicating global asset allocation for family offices [8]. Private Equity and Venture Capital Challenges - Family offices are experiencing a slowdown in exits from private equity and venture capital investments, with nearly a quarter of respondents indicating that private equity funds are not meeting their 2025 return expectations [10][11]. - The performance of venture capital has been particularly poor, with 33% of respondents expressing dissatisfaction with returns, especially in certain popular sectors that have seen a market correction [11][13]. Long-term Investment Perspective - Family offices prioritize long-term wealth preservation and growth, often with investment horizons extending up to 100 years, which allows them to navigate short-term market fluctuations [13][15]. - Despite current declines in return expectations, the long-term strategic positioning and timing capabilities of family offices may yield substantial returns during market adjustments, highlighting the value of quality assets [15].

Group 1 - The core concept of investment is to understand and balance two types of assets: cash flow-generating investments ("laying eggs") and capital appreciation investments ("growing meat") [1][3] Group 2 - "Laying eggs" investments focus on generating regular cash flow, such as interest, dividends, and rental income, and include assets like bonds, high-dividend stocks, REITs, and rental properties [3][10] - "Growing meat" investments aim for asset appreciation, primarily through capital gains, and include growth stocks, emerging market stocks, cryptocurrencies, and early-stage venture capital [5][10] Group 3 - A balanced investment portfolio typically includes both "laying eggs" and "growing meat" assets to provide stable cash flow and long-term growth potential [8] - The allocation between these two asset types depends on individual financial goals, risk tolerance, investment horizon, and market conditions [8][10] Group 4 - Characteristics of "laying eggs" investments include lower risk, lower volatility, and stable returns, making them suitable for investors seeking regular income [10] - In contrast, "growing meat" investments are associated with higher risk and volatility, appealing to investors with a higher risk tolerance and a longer investment horizon [10]