Bank of America Highlights European Focus Amid Dollar Instability

Bank of America has expressed concerns about the current instability of the U.S. dollar. According to Jin10, while global attention is often on regions and countries reducing reliance on dollar-denominated assets, the focus should be on Europe. The bank notes that the new wave of structural dollar sell-offs should concentrate on Europe, where holdings are primarily in stocks with low hedge ratios. Currently, stock fund flows do not indicate a large-scale withdrawal. However, over time, incremental funds are likely to move towards non-U.S. markets, facing higher hedge ratio risks.