Here’s one you don’t see often. While commodities like crude oil and the dollar usually move in the opposite direction, ever since the end of 2016 they have been practically joined at the hip. Year to date, the US Dollar Index has declined by over 5% while crude oil is down more than 15%. Going back to 1983, the current simultaneous decline in both the dollar and oil is one of only 13 times where both have declined more than 5% over a 100-trading day period.
In a B.I.G. Tips report just published, we looked back at prior periods with similar simultaneous declines to see how the dollar, crude oil, and equities in general traded following each period. For anyone interested in seeing the results of this interesting study, sign up for a monthly Bespoke Premium membership now!