The Dollar's $20 Trillion AI Problem
The dollar's $20 trillion AI problem
The AI unwind may be turning into something much bigger than a tech correction. Foreign investors own more than $20 trillion in US equities, while the dollar's traditional safe-haven properties are coming into question. Deutsche Bank warns that an AI-driven sell-off could trigger a dangerous feedback loop between US equities, currency hedging and the dollar. The real risk? Stocks and the dollar falling together, with declining real yields confirming a broader repricing of the AI boom. The next tech correction could become a dollar shock.