Trend: The weakening dollar makes the 2009 gains in the S&P 500 look much better.
There are many reasons that the political leaders will let the dollar weaken, even while they say they "favor a strong dollar policy." Many of consequences are subtle and unpublicized.
J.S. Kim at The Underground Investor shows us one of the illusions created by a weaker dollar. Click on the link to see the charts.
Link: A Market Rally in Monopoly Money | The Underground Investor
When priced in US dollars, the US stock market appears to have rallied significantly since the beginning of the year, now up 18.31% since January 1st.
...if we price the behavior of the S&P 500 in terms of gold, the gain in the S&P 500 since the beginning of the year shrivels to a 3.92% rise.
When we price the behavior of the S&P 500 in terms of silver, the gain in the S&P 500 evaporates and becomes a 21.36% loss.
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