A post by @DeItaone on X.

Goldman Sachs has identified a short USD/JPY position as the optimal foreign-exchange hedge against a potential selloff in AI-linked equities. The recommendation is based on an analysis of the 20 largest episodes since 2000 in which equities and the dollar-yen pair moved in tandem. The bank argues that selling the dollar against the yen offers the most reliable protection when an AI-driven stock market decline pressures risk assets. The call matters because it gives investors a currency-based defensive tool at a time when AI valuations dominate equity market risk. What to watch next is whether the historical correlation between equities and USD/JPY holds during the next drawdown, and whether the yen's safe-haven demand materializes as Goldman expects.