<p>The US dollar is the anchor for global cross-border capital flows. Under the strong dollar backdrop, US stocks perform better than non-US stocks, and vice versa. Since 2018, the strong dollar has intensified the siphoning effect on US stocks, concentrating global liquidity in US equities. If the dollar enters a long-term depreciation cycle, it may replicate the scenario of the US stock market peaking in 2000. The current adjustment in US stocks may experience three scenarios, with the current stage being closer to scenario three, and it may transition to scenario two before rebounding</p>

- The article discusses the influence of the U.S. dollar on global capital flows and its impact on U.S. stock performance, noting that a strong dollar typically benefits U.S. stocks while a weak dollar does the opposite.  
- It outlines historical patterns of stock market adjustments, suggesting that current trends may lead to a potential downturn similar to past events, particularly if economic conditions worsen.  
- The authors predict that upcoming Federal Reserve decisions and potential policy changes could significantly affect market trajectories, with a possibility of a rebound if the Fed signals easing measures.

Is the adjustment of the US stock market in place?