From Yahoo Finance: 2025-05-30 11:54:00

Recent market correlations have shifted, challenging portfolio management as stocks, bonds, and currencies defy historical patterns. Investor concerns include trade wars, tariffs, bond market issues, and US debt sustainability. Goldman Sachs recommends hedging with gold and positioning for dollar weakness against major currencies. Market turbulence stems from new risks disrupting traditional relationships among assets. Unusual simultaneous declines in US stocks, bonds, and the dollar have investors questioning asset correlations. The decline of the US Dollar Index by 8% this year is impacting typical portfolio strategies and hedges. Concerns about Federal Reserve independence and US debt sustainability are shaking up normal market patterns. Investors are advised to position for dollar weakness, buy gold, and watch risks from longer-dated bonds to hedge against market fallout. Gold is expected to reach $3,700 an ounce by year-end and $4,000 an ounce by mid-2026. Shorter-dated bond yields should protect against equity downside if economic growth concerns arise.



Read more at Yahoo Finance: Goldman Sachs says new risks are breaking old market patterns. 3 portfolio moves could help avoid the fallout.