My recommendation is to rent a house in the covenant of Rancho Santa Fe and watch the market depreciate

That may not be the smartest move if you are sitting on $3.5M – 4.5M. Your risk of loss on $ plunge are far higher than price drops in RSF at that price level. I think anyone with more than $1M cash has serious value erosion risk sitting on US $ compared to good RSF grade real estate.