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Never over the last 40 years have the stock market and US Dollar been as inversely correlated on a day-to-day basis as they have been over the last year. Below is a chart highlighting the rolling 1-year correlation between the daily percentage changes of the S&P 500 and the US Dollar. Since making a short-term peak in late 2008, the correlation between the two has gone straight down to nearly -0.5 at the moment. As a client recently noted, it looks like the Fed's new dual mandate to increase stock prices and debase the dollar has been working perfectly.
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