Home

“What does U.S. dollar strength mean for U.S. stocks? … When companies become large and global, with sales sourced from a broad swath of countries and currencies, they develop natural portfolio hedges (as opposed to synthetic hedges using derivatives). Theoretically, gains in one currency (e.g., the U.S. dollar) would be offset by losses in another currency (e.g., the Yen), resulting in a reduced sensitivity to currency swings. In other words, we wouldn’t overstate the importance of the U.S. dollar vis-à-vis the S&P 500.”

Oct. 31, 2014 MVR Portfolio Strategy report by Talley Léger

“The S&P 500 rose during the strong dollar regimes of the late-70s to the mid-80s, and the mid-90s to the early-00s. We appear to be in the third strong dollar regime since 1973.”

Jan. 17, 2015 MVR Portfolio Strategy report by Talley Léger