I stumbled across an interesting statistic today. Our friends from Dorsey Wright & Associates pointed out something about the US Dollar today. Since 1985, there have been 11 ‘rising dollar’ environments, and 11 ‘falling dollar’ environments. During the ‘rising dollar’ periods, SPX averaged +15.52%, but during the ‘falling dollar’ periods, SPX still averaged +14.13%. Moral of the story is that while a falling US Dollar is beneficial to international markets and other areas, US indices such as the S&P 500 are relatively unaffected by the US Dollar.
Here’s what I’ve been reading this morning: