The US dollar's recent surge may lead to a potential shift in trends for global stocks.

From Investing.com: 2024-12-17 07:01:00

The U.S. dollar is up over 6% this year, driven by post-election surge and strong economic growth. Wall Street predicts the dollar will peak in 2025, with the ICE US Dollar Index falling 6% by end of next year. Recent research shows correlation between dollar index and relative returns of domestic vs global stocks, indicating a potential shift in dollar’s trend.

Market outlook suggests year-end rally as corporations complete buybacks and managers “window dress” portfolios. Market could be volatile ahead of Fed meeting, but low volatility index readings could signal short-term corrections. Maintain equity allocations for year-end push, evaluate conditions for rebalancing in new year.

Treasury Secretary appointee Scott Bissent hints at potential global economic reordering akin to Bretton Woods agreement. ARK Innovation ETF has been overbought after period of underperformance, with significant weighting in Tesla contributing to recent outperformance.



Read more at Investing.com: What US Dollar’s Recent Surge Means for Global Stock Allocations