Today the U.S. Dollar Index has sold off very sharply throughout the trading session. The U.S. Dollar Index is trading lower by nearly $1.00 to $79.15. This is a major decline in the U.S. Dollar Index. As we have seen for quite some time now when the U.S. Dollar Index declines the major stock market indexes will inflate and trade higher. Therefore, the powers that be are willing to decline the purchasing power of every American citizen so that they can show a higher 401K statement at the end of the quarter.
What a trade off. Real wealth is created when the stock market can increase on a stronger U.S. Dollar Index or at least on a stable U.S. Dollar. This action is just a trade off to masquerade the truth behind every market move. When this inverse relationship finally ends between the dollar and the stock market investors better beware. The game of musical chairs can only last so long.
