The Us Dollar And Stock Market Correlation

826 WordsNov 3, 20164 Pages
The US Dollar and Stock Market Correlation By Ray Winder | Submitted On December 08, 2009 Recommend Article Article Comments Print Article Share this article on Facebook Share this article on Twitter Share this article on Google+ Share this article on Linkedin Share this article on StumbleUpon Share this article on Delicious Share this article on Digg Share this article on Reddit Share this article on Pinterest For quite some time now the stock market and the dollar have been locked in a reverse correlation. When the dollar went up the market went down and so forth. In particular 2009 has seen that correlation play out in dramatic fashion. The stock market had a bottom in November 2008 and then the final bottom of the bear market run down in March 2009. The stock market as measured by the Dow 30 industrials bottomed in March at which time the Dollar index negatively correlated by peaking in price. In all the retracements and minor corrections that occurred, since then, in the Dow the dollar also experienced a similar but opposite reaction. Within the last week or so the dollar has begun to react with slightly more strength and the market seems to be attempting to dislodge that inverse correlation between a falling dollar and a rising market. On Friday Dec. 4th. the Dow was up strongly in the morning with a rising dollar. In the weeks and months prior to this if the dollar had risen strongly the market almost inevitably would have fallen. The Dow did give back
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