The Dollar's Major Trend! BofA Reveals "These 2 Investments" as the Biggest Winners

Bank of America (BofA) analysis indicates that in the context of a weakening U.S. dollar trend, gold, cryptocurrencies, commodities, and emerging markets will be the biggest winners as investors actively seek tools to hedge against inflation and dollar depreciation.

With global central banks entering a rate-cutting cycle, BofA investment strategist Hartnett believes that the U.S. Federal Reserve will adopt currency depreciation as a core strategy to address debt challenges, with yield curve control (YCC) making a comeback. He recommends investors increase holdings in gold and cryptocurrencies to hedge against long-term dollar bear market risks.

Hartnett stated that as the world enters a new round of monetary easing, market expectations for the Fed to join the "rate-cutting party" have peaked. So far this year, 88 central banks worldwide have implemented rate cuts, marking the fastest pace of easing since 2020.

BofA noted that these expectations have driven asset prices—including stocks, credit, gold, and cryptocurrencies—to repeatedly hit record highs, with investors fully preparing for Fed Chair Powell's recent dovish signals.