Saturday, April 4, 2026 
Building and Maintaining a Relationship - A Self Help Blog Post
Let’s take a look at the current relationship that the dollar has with the U.S. Equity market.
As you can see it is inverse. Dollar up = stocks down.
spx-vs-dollar
How is this relationship going to look moving forward. In other words, tell me about the future.
While not a psychologist, I do have some experience with markets. And my experience tells me that this relationship has to change. It has no choice. It will roll in ecstasy into my bankroll. What we are staring at here is deep into the eyes of volatility.
The decoupling of this relationship is going to happen. We are no longer going to see the dollar rally as stocks go down. We are going to see the dollar decline as stocks go down. If you don’t believe me, allow me to elaborate with a picture. From our history. Take a look at the chart below. This is what the relationship is going to look like. The dollar and stocks will no longer have an inverse relationship. Position yourself accordingly.
Nothing changes in the markets. Just the participants.
usd-vs-spx02
Until we meet again….I’m back. Back in the New York groove.
Peace
I am sorry but can you help me understand what you are saying? Are you saying the dollar will decline and equity appreciate — so we should position ourself long?
Thanks again for your blog. I find it interesting and helpful.
Comment by david — December 4, 2008 @ 1:11 am
I edited the post.
Comment by Mr. Volatility — December 4, 2008 @ 2:22 pm
Thanks!
Comment by david — December 4, 2008 @ 8:19 pm
Good blog post. I like that post.
Comment by Paul Anderson — December 18, 2008 @ 6:03 am
Thanks a lot! I love the blog.
Comment by Steven Harmision — December 22, 2008 @ 4:05 am
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