Six months ago, the correlation between the S&P 500 and the US Dollar was at its most-inverse level since late 2009. Today, that inverse correlation has been completely erased and the two assets are now more correlated than they have been in more than a decade!
Whenever there are extreme shifts in the relationship between different asset classes, you can expect that the breakdown will have ramifications on the assets involved. With that in mind, earlier this week we sent out a report to Bespoke Premium clients highlighting similar periods in the past where the dollar and equities were as positively correlated as they are now. Clients that wish to view the report can click on the link below. If you are not yet a client but wish to subscribe, sign up today!