The U.S. dollar is currently trading approximately 23% above its fair value, the largest divergence on record, according to Bank of America. This gap has increased by 18 percentage points over the last four years. As of January 2025, the U.S. dollar index ($DXY) has risen 21%. In the stock market, the S&P 500's market capitalization as a share of global GDP has reached a record 46%, surpassing the previous peak of 42% before the 2022 bear market. Additionally, the concentration of the top 10 U.S. stocks accounts for nearly 40% of the total market capitalization, with three companies—Microsoft (MSFT), NVIDIA (NVDA), and Apple (AAPL)—comprising 20% of the S&P 500. Furthermore, only 17% of stocks outperformed the S&P 500 in December 2024, marking the lowest performance since tracking began 38 years ago. The U.S. stock market has also reached unprecedented levels of overvaluation, with stock prices relative to European equities at 3.6 times, significantly above the long-term average of 1.2 times.