Most people are probably well aware that the dollar has been strong lately, but many may be surprised by the extent of the rally. With a gain of over 6%, the US Dollar Index is on pace for its best quarter in more than four years. To find even a time when the US Dollar Index was up 5% in a calendar quarter you have to go back to Q3 of 2011.
Based on the fact that you have to go back three years just to find a quarterly move that was even close to this quarter's gain, you can imagine that this quarter's move in the dollar is likely to have implications across all different asset classes, including equities. Since different sectors and stocks within those sectors have different levels of exposure to international markets, not all parts of the equity market will be equally impacted.
Earlier today, we sent out an extensive report to Bespoke Premium and Institutional clients detailing the performance of different sectors following other quarters where the US Dollar Index rallied more than 5%. If you are a client and want to see this important report, please click on the link below. If you are not already a client, but want access to the report, sign up today for our no obligation free trial today!