Part 8/11:
The overarching theme emerging from these developments is a decay in confidence in traditional safe assets. For decades, bonds and the dollar have served as pillars of stability, providing protection during turbulent times. However, recent bond market behavior mirrors that of emerging countries, where "safe" assets can turn risky.
This paradigm shift is forcing institutional and retail investors alike to diversify into assets less correlated with the dollar or traditional bonds — including commodities like gold, silver, platinum, and palladium, as well as cryptocurrencies like Bitcoin. They are also seeking exposure to other currencies such as the Australian dollar and the Korean won, as they aim to hedge against the potential decline of the dollar’s dominance.