Strategist: The weakness of the US dollar is a sign of cross-border investors flow.

Strategists at Neuberger Berman said in a report that the recent weakening of the US dollar appears to be a sign of cross-border investor flows. "These fund flows are likely related to the prospect of slowing US economic growth, but may also coincide with the recovery of US risk assets." US risk assets are rising as dollar investors shift from government bonds back to the stock market. However, if non-dollar investors are taking on greater risks while moving away from the US market, there will not be a flow of funds back into dollar assets. This means that the US stock market is rising, but the dollar remains weak. Neuberger Berman expects the US dollar to Euro and Yen to further decline by 3%-5% this year, but predicts increased volatility.