DIA - The U.S. Dollar The Business Cycle And What It Means For U.S. Vs. International Equities

• The USD's wide acceptance for international commerce makes it a highly sought-after currency, especially when economic conditions are deteriorating.
• If we consider that USD weakness suggests an improving global business cycle, then it's reasonable to expect that would favor international equities over U.S. equities.
• A depreciating USD trend generally corresponds with international equities outperforming the U.S., and vice versa.
• U.S. equities have steadily outperformed international equities since 2008.

For further details see: