On Tuesday morning, Bloomberg featured an article entitled The Great Debasement Is Rippling Across Markets. From the start of the year until its low in the middle of September, the US dollar index fell by nearly 15%. The weak dollar seems to fuel the debasement narrative, benefiting a few asset classes. The most obvious assets benefiting are the precious metals, with gold and silver up 50% and 75% year to date, respectively. Not in the “debasement limelight” like gold and silver, but also outperforming are foreign stocks. The negative correlation of foreign stocks and the dollar has proven robust this year.
Dollar Correlation: Implications For Foreign…
On Tuesday morning, Bloomberg featured an article entitled The Great Debasement Is Rippling Across Markets. From the start of the year until its low in the middle of September, the US dollar index fell by nearly 15%. The weak dollar seems to fuel the debasement narrative, benefiting a few asset classes. The most obvious assets benefiting are the precious metals, with gold and silver up 50% and 75% year to date, respectively. Not in the “debasement limelight” like gold and silver, but also outperforming are foreign stocks. The negative correlation of foreign stocks and the dollar has proven robust this year.