China International Capital Corporation warns that the 'triple kill' of U.S. stocks, bonds, and foreign exchange may become long-term, increasing the value of gold allocation.

According to Shenchao TechFlow, on May 15, China International Capital Corporation pointed out that the U.S. stock, bond, and foreign exchange markets are experiencing a 'triple kill' again, reflecting changes in the inflation environment and the dollar cycle. The safe-haven ability of safe assets within U.S. dollar assets has declined, making it difficult to hedge against losses in risk assets.

As the internal allocation of U.S. dollar assets cannot effectively diversify risks, one should be wary of the possibility of the 'triple kill' becoming a recurring and long-term phenomenon. The safe-haven ability of U.S. Treasury bonds has decreased, safe assets are scarce, and the value of gold allocation has increased. The uncertainty in the outlook for U.S. stocks has grown, making non-U.S. risk assets more attractive, and stocks in Central and Eastern Europe may demonstrate resilience.