If the US dollar is indeed nearing a critical juncture and is in the process of potentially devaluing against other currencies—which is our high-conviction thesis—it’s essential to consider another significant trend that may emerge:

The underperformance of US equities relative to global markets. In my view, this will be one of the defining trends of the coming years.

The current concentration of capital flows into US assets is unprecedented and, in my opinion, entirely unsustainable.

Historically, as the US dollar weakens, capital tends to flow back into global markets, which today remain deeply undervalued in relative terms.

Notably, there is a strong correlation between the DXY Index and the relative performance of the S&P 500 compared to the MSCI World Index (excluding the US), reinforcing this potential shift.