Why a King Dollar decline could pull the S&P 500 down with it…

18-Jun-2013

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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. Oxstones.com also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.







By Chris Kimble,  From blog.kimblechartingsolutions.com,

 

 For the majority of the time from 2003 to 2011, the U.S. Dollar and the S&P 500 pretty much moved in opposite directions (Low Correlation Pink Shading). For the prior ten years (1993 to 2003 Green shading) the opposite took place, Dollar and SPY were highly correlated.

Since Mid-2011, the US$ and SPY have had a high degree of correlation, both moving higher for almost two years!

The US$ now faces a 8-year resistance line at (1) in the chart above, created a large bearish wick last month at the line and recently 77% of investors were bullish the US$.

 

Could a decline in the US$ pull SPY down with it?  Possible if the last two years trend continues!

Stay tuned and what the US$ and Yen!!!

 

 


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