The American Empire in a Changing World


Saturday, December 15, 2012

''Breakout in Foreign Stocks Suggests Breakdown in USD''

From Financial Sense

''One useful relationship that helps identify turning points in the USD Index is a look at foreign equities. Foreign stocks will often outperform the U.S. markets when the USD is weak; part of the reason for this is that foreign markets are very sensitive to inflation, so when their currencies advance relative to the USD, their inflation rates fall and their equities climb.''

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