DXY and US Stock Market Correlation since 2000

Leading into the 2008 recession, we saw an inverse correlation between the US Dollar and the Stock Market; while the dollar continued to fail, the stock market continued to rally. This eventually led to one of the worst recessions in modern American history. Similarly, in 2020, we are seeing that same disconnect that was present in 2007-2008, where the dollar and markets are moving inversely, which could begin to indicate that a macro correction in the market could be upon us this year.

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Copyright Rohan Karunaratne 2020