The US dollar is on track for its worst year in modern history

Looking at the scale of a few years, the dollar has been insanely overvalued post-COVID.

Historically, the euro has generally been a good bit more valuable than the dollar. But in 2022, the dollar was more valuable than the euro at a point. Recently it's been bouncing around at nearly 1 euro=1 dollar.

Then there's the yen. Used to bounce around between 1 dollar = 100~110 yen. Recently reached 1 dollar = 162 yen.

The dollar losing its value is a return to the pre-covid norm. Lots of countries pumped money into the US to make money off skyrocketing stocks and high interest rates, and now they're pulling it back into their countries. It's a high that can't last forever. And if it did last forever, that would not be good for the world as a whole since it would mean every country is supporting the US at the cost of devaluing themselves.

I think the bigger problem is the reason why people are pulling back their money from US markets.

US markets have been flying high since COVID. Much more than other countries' markets. Why not take profit when US markets + dollar is at a high?

Why are you ignoring the real reason?

And what do you think the real reason is?

Economic instability and uncertainty. How high it is compared to other markets is debatable it has increased significantly this year due obvious reasons, though

S&P500 literally at an all time high.

Even I wasn't paying attention for a few days (just flew to Canada from Europe).

So my theory of profit taking seems right, back to fresh highs.