Beggar Thy Neighbor’s Stock Market

Interesting chart which we suspected and all knew that, thus far, the 2013 macro equity trade x/ U.S. has been to be long those markets where the home currency is weakening against the dollar.  The red regression line illustrates this relationship though it is far from a perfect fit.

Interesting to note Australia’s stock market, one of the best performers in 2013, began its  latest leg as the currency peaked against the dollar on January 10th.

Brazilian equities have been the real dog this year as it appears the government will allow the currency to appreciate to dampen inflation.

Feb17_Stock Market_CurrencyFeb17_Aussie_AORD

(click here if charts are not observable)

This entry was posted in Equities, Monetary Policy and tagged , , , , , . Bookmark the permalink.

2 Responses to Beggar Thy Neighbor’s Stock Market

  1. Pingback: Beggar Thy Neighbor’s Stock Market | Fifth Estate

  2. Here. I would like to appreciate your work here.. I have been your big fan from now… Thank you very much…

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