This isn’t quite true, because you’re taxed on nominal, not real gains. If I own a share of a company worth $100, and the USD drops in value by 50%, but my perf

This isn’t quite true, because you’re taxed on nominal, not real gains. If I own a share of a company worth $100, and the USD drops in value by 50%, but my perfect inflation hedge of a stock (which they’re generally not) shoots up to $200. I’m not richer in any real sense, and the I still have to pay ~30% tax on the increase in value in CA when I sell it. Better than holding dollars in that scenario, though.