Currency Depreciation & Inflation - The dollar has depreciated by approximately 10% in the first half of the year, marking its single biggest decline in six months [1] - Inflation is substantially above target in all forecasts for next year [1] - There's substantial asset inflation away from the dollar, with people seeking ways to de-dollarize or de-risk their portfolios against US sovereign risk [2] Gold & Alternative Assets - Gold is at record highs, and other dollar substitutes like crypto are experiencing significant appreciation [2] - Sovereigns and central banks worldwide increasingly view gold as a safe harbor asset, replacing the dollar's traditional role [3][4] Investment & Hedging Strategies - Foreign investors are hedging their returns back to their local currency when buying US equities, indicating a desire to immunize sovereign exposure to the United States [4]

Group 1 - Inflation is projected to be substantially above target in all forecasts for the next year, contributing to a 10% depreciation of the dollar in the first half of this year, marking the largest decline [1] - There is significant asset inflation occurring away from the dollar, with gold reaching record highs and substantial appreciation in alternative assets like cryptocurrencies, as investors seek to mitigate US sovereign risk [2] - Gold is increasingly viewed as a safe harbor asset, similar to the historical perception of the dollar, raising concerns about the shift in investor sentiment towards hedging against US exposure when investing in U.S. equities [4] Group 2 - Central banks and individual investors globally are adjusting their strategies, indicating a shift in how they perceive and manage their investments in relation to U.S. assets [3][4] - Foreign investors are now hedging their returns back to their local currencies when purchasing U.S. equities, reflecting a bifurcation in investment strategies [4]