Group 1 - The core viewpoint of the report is that the US dollar has depreciated by 10% against developed market currencies since early 2025, with a trade-weighted decline of 8%, and this downward trend is expected to continue [1][3] - Goldman Sachs analysts emphasize that during periods of dollar weakness, the performance of various assets can differ significantly, necessitating a strategy that considers specific driving factors [3] - The report suggests that merely reducing dollar-denominated assets is not the optimal choice; instead, using derivatives or cross-market hedging can help mitigate currency fluctuations while preserving asset return potential [3] Group 2 - The report indicates that if the long-term weakness of the dollar is due to a decline in investor appetite for US assets or a dovish shift in Federal Reserve policy, the direct impact on US stocks and bonds may be limited [3] - Investors are advised to adopt dynamic hedging strategies based on their portfolio structure rather than making aggressive adjustments to dollar asset allocations, aiming to balance risk and return [3] - Current market focus is on the Federal Reserve's policy trajectory and changes in global capital flows to assess the next steps for the dollar [3]