The inverse relationship between stocks and the US dollar is on full display in the charts above. Dollar up stocks down and dollar down stocks up. Commodities, oil, gold, etc..., are traded in dollars and move inversely to the dollar which sends overall stocks in the same direction.
That relationship was groovy until April and May when the dollar slides into a sideways funk. Thus, so do stocks (blue channels). The AI orgy kicks into high gear and clearly overrides the dollar strength in May. It tells you that the AI hype is dominant and off the charts. The dollar then slumps all of this month sending stocks ever higher.
Stocks go up on a weaker dollar and stocks go up on the AI hype despite a stronger dollar. No wonder the bulls are partying like its 1999 as Prince would sing. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added Sunday, 6/25/23: USD tags 103.17 on Friday.
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