The dollar in 2020 and 2021 plays an exceptional role in the markets. If you look at the 90-day correlation (relationship) table, you will notice that the dollar is negatively associated 90% with stocks, oil, commodities and bitcoin (80% gold at 15 days). This means that the fall in the dollar is directly translated into the growth of stocks, oil, commodities and bitcoin, and vice versa. The last time this was observed in 2016.
What follows from this? The current favorable phase in the economy and the trillions of money printed are eroding the value of the dollar. Therefore, his qA further drop in value will drive up the value of stocks, oil, commodities and bitcoin. This euphoria will continue until the correlation weakens. Let me remind you that according to the forecast of our model, the current favorable phase will continue for another 6 months. Markets may go high. But remember that the opposite is also true – a stronger dollar will weaken the rest of the classes.