Deutsche Bank's AI Dollar Warning Could Hit Bitcoin, Gold, and Stocks

George Saravelos, Deutsche Bank’s global head of foreign-exchange research, warned in a client note on Friday that an AI-led stock selloff could hit both US equities and the dollar, breaking a decade-long pattern in which the dollar rose as stocks fell. He cited more than $20 trillion in US shares owned by foreigners, about 90% of that value from price appreciation rather than new buying, and said foreign stock purchases now fund the entire US current account deficit. Saravelos said investors who had skipped currency hedging may sell dollars when a US-originated shock forces hedging. Friday trading showed the S&P 500 down 1.28%, the dollar index up 0.09%, gold down 2.44% and Bitcoin lower.