Dollar Calls the Tune for Stocks, Bonds, Oil
As the Federal Reserve continues to pump money into the financial system, investors are nervously buying and selling cash. This behavior is not only causing the market to swing rapidly, but is also directly affecting other assets such as stocks, corporate bonds and oil. In fact, the U.S. dollar index and the Standard & Poor's 500-stock index are moving in direct correlation almost daily. Experts say that these Fed-dictated correlations will ease as investors focus more on each asset's fundamentals and the U.S. economy improves, stabilizing the dollar.
Source: WSJ.com | November 2, 2009
Printer-friendly version
Send to friend
PDF version
