While it may be the case that dedollarization is a trend with legs, in the short term the implication from the chart above is two fold. First, on a year over year basis the dollar has declined to a level where it typically bounces. Second, if that is accurate then the recent outperformance of international equities is likely over - at least in the short term.
While it may be the case that dedollarization is a trend with legs, in the short term the implication from the chart above is two fold. First, on a year over year basis the dollar has declined to a level where it typically bounces. Second, if that is accurate then the recent outperformance of international equities is likely over - at least in the short term.
Yes, that’s a reasonable view for a short-term/trading outlook.