The Dollar, Gold, and the stock market

The dollar weakens, gold rallies, and U.S. equities continue to light up. In a global economy it all makes sense. The value of large cap U.S. equities with their mulitinational exposures just reprice on a weighted currency value known in the minds of investors but not explicit on any exchange. Gold rises in some non-investable way as the financial crisis of '08-'09 didn't exactly find the U.S. currency as the usual safe haven, safe but not without some questions. Gold finds what may be viewed as irrational buyers in some huge emerging market economies that have personal biases toward tangible wealth, bars of it. The U.S. equity market benefits from a huge amount of frustrated liquidity that may just be finding the way back in.

If the holidays turn out to be the days that folks have been saving for, as suggested here a month or so ago, the equity markets may slow down the gold rush.