KKR recommends investors to actively allocate risky assets to hedge against the weakening US dollar risk.

KKR & Co. stated that investors may be underestimating the potential for further gains in stocks and other risk assets, but they should hedge against the risks of a weakening US dollar, rising bond yields, and increasing market volatility. The company's head of Global Macro and Asset Allocation, Henry McVey, stated that relaxed financial conditions, global central bank easing, productivity improvements, and limited net issuance have created a favorable environment for risk assets. "Looking ahead, we remain optimistic," McVey wrote in the company's mid-year outlook report. "Of course, we expect more market pullbacks than in the past," but many factors "will lead this cycle to be deeper and longer than many anticipate."