Search Results for: dollar

U.S. Twin Deficits (% of GDP) Lead Real Trade Weighted Dollar Index by Two Years The chart suggests that the U.S. dollar should weaken over time. Image: Strategas

Gold Price vs. U.S. Dollar Currently, when the U.S. dollar is weaker, the price of gold is higher, as shown in this nice chart below. But it’s not always the case. Image: ANZ Research

Gold, U.S. Dollar, 10-Year Treasuries Bonds around 10% S&P 500 Declines The chart shows the average performances of gold, U.S. dollar, 10-year Treasury bonds, around S&P 500 corrections of -10% or more since 1976. Image: Wells Fargo Investment Institute

International Liquidity by Country – Total Reserves Excluding Gold, U.S. Dollars USA holds $115 billion and China holds over $3 trillion in reserves. Image: howmuch.net

The Trade-Weighted Broad US Dollar Index Hits the Highest Level since 2002 A strong dollar leads to wider trade deficits, and this is a headwind for US exporters. A strong dollar can also hurt emerging markets. The trade-weighted broad US Dollar index is a weighted average of the foreign exchange value of the US dollar against…

Why Is the Dollar So Strong? There are several reasons for this: – Interest rates differential – Strong American economy and no immediate recession– American geopolitical dominance– Market shadow over Donald Trump’s re-election Image: The Daily Shot

Total Return Performance of Various Assets Despite Warren Buffett’s skepticism towards gold as an investment, the precious metal has outperformed both U.S. equities and U.S. Treasury bonds over the past 25 years. Image: Deutsche Bank

Valuation – S&P 500 Next-Twelve-Month P/E Ratio The S&P 500 NTM P/E ratio is currently at a high level of 20.9, indicating that investors are willing to pay a relatively high price for each dollar of expected earnings in the next twelve months. Image: Goldman Sachs Global Investment Research

Currency Futures Positioning Should investors expect the U.S. dollar to weaken? Image: Deutsche Bank Asset Allocation

Estimated Currency Impact to S&P 500 YoY Sales Growth A strong U.S. dollar does not bode well for U.S. firms sales. Image: BofA US Equity & Quant Strategy

S&P 500 – Cross-Asset Correlations So far, the S&P 500 remains inversely correlated with the U.S. dollar and positively correlated with U.S. 10-year bonds. Image: Goldman Sachs Global Investment Research