Thursday, January 28, 2010

U.S. dollar and Equities

Many have suggested that the inverse relationship between U.S. dollar and equities, the carry trade, has been broken.

As they say in Missouri, show-me.

U.S. Dollar Index and S&P 500:


Looks on to me. If that is the case, another round of dollar devaluation will certainly surprise the growing number of equity bears.

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