Institutions: Declining demand for US Treasuries from foreign investors indicates a weakening dollar.

Jin10 data reported on October 21, strategist Tim Murray from the Puxin Group pointed out that due to declining foreign demand, the dollar has significantly dropped in recent months, and there is further devaluation space. This strategist stated, “The confrontational stance of the Trump administration on trade and foreign policy has reduced the willingness of foreign institutions to hold U.S. assets—especially U.S. Treasury bonds.” Murray stated that investors may need to consider adjusting their portfolios accordingly (especially fixed income allocations) to prepare for further weakness of the dollar. He suggested converting some U.S. stock positions into non-U.S. stocks (as these assets often appreciate in dollar terms when the dollar depreciates) and increasing holdings in other currency assets.