Part 3/10:
The recent downturn in US assets is unusual, as historically, when stocks fall, bonds and the dollar tend to stabilize or rise. However, now, stocks, bonds, and the dollar are all declining simultaneously—an alarming sign that the US is beginning to resemble emerging markets like Brazil, where markets act unpredictably and risk perceptions soar.
Global investors are responding by diversifying into assets less tied to the dollar, such as the Australian dollar, South Korean won, Bitcoin, and precious metals like gold and platinum. This "basket" approach reflects a loss of faith in dollar-denominated assets and a search for stability elsewhere.