The Strong Dollar Trade

Recently, I’ve talked a lot about the Strong Dollar Trade. I wanted to show you exactly what I meant by using a series of charts.

First off, here’s the soaring dollar index:

The strong dollar has caused commodities to tumble:

And that includes gold:

Lower commodity prices have hurt energy stocks:

Yet Consumer Staples haven’t budged:

Long-term Treasury yields have fallen:

The shift in the market has caused greater volatility:

Notice the gradual increase in the spread between the daily high and low.

Small-cap stocks have felt most of the pain:

Posted by Eddy Elfenbein on October 13th, 2014 at 8:21 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.