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The dollar and the US stock market – a historical perspective

The performance of the US stock market has varied significantly during the four periods in which the dollar has strengthened considerably since it became a free-floating currency in the early 1970s. This is because the circumstances that gave rise to the dollar’s gains were positive for equity prices on some occasions, but negative on others. Looking ahead, we expect the US currency to continue to fare quite well, but the US stock market to struggle to make further headway.


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