Correlation, Coupling, and the Dollar Bull
Seven separate assets currently maintain an 85% correlation (or better) with the S&P 500 over the last six months. This correlated group includes Reuters/Jefferies CRB Index, emerging-market bond spreads, and not surprisingly, the euro. I’ve been talking about the tight correlation between currencies and stocks for some time. My reason is simple: As risk ebbs and flows, the amount of traders buying U.S. dollars also ebbs and flows - only in an opposite direction. So that means, when the
Original post by Tri Planning Real Estate: