Looking at the broad global markets, U.S. stocks are in a positive trend along with the U.S. Dollar. International stocks, commodities, and foreign currency are trending down.
With the directional trends and momentum being in U.S. stocks, though not without volatility, that has been our focus this year.
International stocks including both developed countries $EFA and emerging markets $EEM are trending down so far in 2018 as the U.S. Dollar $UUP is trending up.
The U.S. Dollar
$UUP is trending similar to U.S. stocks $SPY in April.
The dollar has an inverse correlation with foreign currency like the Euro.
With the rising dollar
$USD, gold $GLD is trending down even more than the Euro currency $FXE.
So, the overall broad observation of global macro picture is clearly a rising U.S. Dollar and U.S. stocks that are diverging from other markets.
Mike Shell is the Founder, and Chief Investment Officer of Shell Capital Management, LLC, and the portfolio manager of ASYMMETRY® Managed Portfolios and ASYMMETRY® Global Tactical.
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The observations shared in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risk including the potential loss of principal an investor must be willing to bear. Past performance is no guarantee of future results.
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