Chart of the Week: Correlation Coefficient U.S. Dollar versus Equities

Is the falling dollar good or bad for stocks?

The answer, according to Mark Hulbert, is: it depends. "Which is which depends a lot on the degree of confidence that people have in the economy general and the monetary authorities in particular."


The chart above plots the "correlation coefficient between the dollar’s weekly returns over the trailing 12 months." At +1 (the theoretical maximum correlation) the U.S. stock market as measured by the Wilshire 5000, would be moving in “perfect lockstep” with the dollar. Any increase (or decrease) in the value of the dollar would have been accompanied by an identical move in the market.


Random Items:

Social Security reform = new debt

Striking up digital video search

Have investors learned nothing?

Dow 36,000 Lives (Ha!)

The magic that makes Google tick

The ‘blog’ revolution sweeps across China


Quote of the Day

"The less a man knows about the past and the present the more insecure must be his judgment of the future."     – Sigmund Freud

What's been said:

Discussions found on the web:
  1. 网站优化 commented on Jun 19

    I was surfing along and came across your website. I really enjoyed it. Thanks! This site is very informative. I hope to see more in the near future, Wishing you all the best!

Posted Under