Tag Archives: yen

Stock Market Strategy: Liquidity, Yen Carry and the New Paradigm

A paradigmatic shift in market behavior occurred after the collapse of 2008. The commonly accepted drivers of market direction, most especially economic cycles, no longer applies in this post apocalyptic financial farce. In fact, constant Fed / Government intervention and outright manipulation has produced a parallel universe where “good” economic news is bad for the markets and “bad” economic news […]

US$/S&P 500 Correlation, Dollar Cheaper to Borrow Than the Yen, AIG Momentum Discussed

As the graph above illustrates, a serious correlation between the US$ and the US equity markets has developed over the last 9+ years. This correlation is strong and for policy makers in Washington, rather disturbing. The relationship is as follows: If the US$ loses value the equity markets have rallied and if the US$ strengthens equity markets have sold off. […]