The U.S. dollar recently suffered its sharpest mid‑year decline in over 50 years, eroding spending power for American travelers and signaling broader risks for dollar‑dominated portfolios.
The U.S. national debt is nearing $40 trillion, with interest rates still elevated despite cooling inflation and slower GDP growth. About one-third of outstanding Treasury debt will mature within the next three years, requiring refinancing at today’s higher rates. This will push annual interest costs, already exceeding $1 trillion, even higher, leaving less room in the federal budget for other essential programs.
This trend raises concerns over long-term purchasing power, inflationary pressures, and currency risk for families holding all their investments in U.S. dollars. While not an immediate crisis, the outlook underscores the importance of diversification and monitoring debt sustainability.
Looking at these current and pending issues, as a U.S.-based investor, it’s right to ask:
What’s the best way to safeguard global purchasing power and preserve more of my wealth?
This is where LFA offers significant value. As a trusted Swiss wealth manager, headquartered in Zurich and licensed to provide wealth management services to U.S. residents, LFA helps clients diversify their assets beyond U.S. borders, offsetting domestic currency risk and offering access to more stable currency alternatives such as the Swiss franc.
The Dollar’s Decline: Immediate Impact and Long-Term Concerns
With Americans buying more goods and services, the dollar’s weakness has even wider implications. Currency fluctuations don’t just affect the cost of foreign travel; they impact spending power, inflation sensitivity, and the real value of investments.
If you have $1 million in investable assets, you should preemptively hedge some of your net worth against these potential risks.
Why the Swiss Franc Continues to Be a Stable Hedge
The Swiss franc is renowned for its stability over hundreds of years. Neutrality, a strong economy, and conservative monetary policies make it a favored currency during global uncertainty. Holding assets in franc‑denominated instruments helps safeguard against dollar depreciation while preserving its value.
At LFA, we leverage this stability as part of a wealth management Switzerland approach, helping clients reduce reliance on U.S. markets and gain broader currency exposure and diversification.
Global Diversification: Strategy, Not Speculation
Quality wealth management isn’t about chasing yields; it is more about building resilience during volatile markets. Now that you have accumulated significant assets, your goal is to preserve those assets in a variety of market conditions.
LFA supports U.S. investors in accessing global investment strategies that span Europe, emerging markets, alternatives, and more.
By blending Swiss and other European equities, CHF bonds, and alternative investment classes, clients can pursue growth while hedging against the volatilities of the securities markets and currencies. LFA’s discretionary and non-discretionary portfolio services ensure strategies align with each investor’s risk tolerance, timelines, and financial goals.
Cross-Border Compliance: A Priority, Not an Afterthought
Diversifying a part of your wealth into Switzerland requires more than just access; it requires both U.S. and Swiss regulatory alignment.
LFA is registered with FINMA and the U.S. SEC, meaning clients benefit from integrated compliance practices with regulatory agencies.
Whether managing Swiss bank accounts for U.S. citizens, designing multi-currency portfolios, or coordinating with U.S. tax advisors, LFA ensures global diversification doesn’t create a series of domestic compliance headaches.
Stability Meets Sophistication: LFA’s High-Touch Swiss Precision
LFA blends Swiss precision and discretion with an exceptionally high‑service model that meets the needs of U.S. investors. Whether through personalized wealth planning, private equity alternatives, or international trust and IRA structures, every solution reflects deep expertise and a client-first commitment.
With a fiduciary duty on both sides of the Atlantic and a fee structure aligned with client outcomes, LFA remains uniquely positioned to serve high-net-worth clients seeking true global diversification.
What You Can Do Now to Protect Your Assets
A weakening dollar doesn’t have to weaken your financial position. Consider these proven ways to defend your wealth and build increased resilience into your dollar-denominated portfolio.
1. Assess Currency Exposure:
Your portfolio may be more tied to the U.S. dollar than you realize. Even if you hold international equities or global funds, many are still denominated in USD, which means their exchange rates with other currencies could drop if the dollar weakens.
Start by reviewing how your assets are allocated to see how much of your net worth is held in dollars. Then, look beyond these investments at real estate, cash holdings, and even certain private equity positions, which can be currency-dependent.
Understanding this exposure is the first step toward creating a hedge that protects the purchasing power of a dollar in real terms.
2. Explore Swiss Alternatives:
Switzerland offers one of the most stable currencies in the world: the Swiss franc (CHF). Allocating a portion of your portfolio to CHF investments can reduce your reliance on the dollar’s performance. This might include franc-denominated bonds, blue-chip Swiss equities, or even holding CHF-denominated cash reserves in Swiss bank accounts for U.S. citizens.
Swiss investments often combine strong corporate fundamentals with currency stability, providing growth potential and downside protection during periods of global uncertainty.
3. Partner with a Compliant Swiss-Based Financial Advisory Firm:
International diversification should never come at the cost of compliance. Work with a firm registered in the U.S. and Switzerland, like LFA, that understands the regulatory requirements on both sides of the pond. This dual-registration ensures that your Swiss wealth management strategy fully aligns with U.S. tax laws, FATCA reporting obligations, and FINMA standards.
4. Pursue Thoughtful Global Diversification:
Global diversification extends beyond owning domestic and international stocks; it involves balancing your portfolio across geographies, sectors, currencies, and asset classes. A well-structured allocation might combine U.S. and Swiss assets with exposure to Europe, Asia, and select emerging markets. This approach smooths returns and reduces the risk that any single market, regulation change, or currency swing will disproportionately affect your wealth.
How LFA Can Help You Navigate Currency Risk
At LFA, our core mission is to help U.S. investors diversify beyond U.S. markets while preserving the purchasing power of their assets and optimizing global wealth. With regulatory dual-registration, Swiss investing access, and personalized service, we can help you:
- Hedge currency risk effectively
- Expand into European and global markets
- Maintain compliance with U.S. tax laws
- Customize strategies aligned with long-term goals
If you’d like to explore how Swiss-based wealth management strategies connect with LFA, to schedule an introductory call.
