Bloomberg Intelligence's 'Equity Market Minute' 7/26/2018

Gina Martin Adams discusses the impact of currency fluctuations on equity prices. A strong dollar has historically coincided with strong U.S. equity performance, but this trend may reverse if the dollar weakens. Charts illustrate the relationship between the S&P 500 and the dollar index, showing U.S. outperformance during dollar strength. Interestingly, energy stocks have also outperformed during dollar strength, contrary to conventional wisdom. The video concludes with a recommendation to monitor currency markets closely for potential impacts on equity portfolios.

What has been the relationship between a strong dollar and U.S. equity performance?

• A strong dollar has led to U.S. equity underperformance.

• A strong dollar has no impact on U.S. equity performance.

• A strong dollar has led to global equity outperformance.

• A strong dollar has coincided with U.S. equity outperformance.

What might happen to U.S. stocks if the dollar weakens?

• U.S. stocks may outperform global counterparts.

• U.S. stocks may underperform global counterparts.

• U.S. stocks will remain unaffected.

• U.S. stocks will outperform energy stocks.

What unusual trend has been observed with energy stocks in relation to the dollar?

• Energy stocks underperform when the dollar is strong.

• Energy stocks are unaffected by dollar strength.

• Energy stocks outperform when the dollar is weak.

• Energy stocks outperform when the dollar is strong.

Why is the observed trend in energy stocks considered unusual?

• Because energy stocks typically perform well with a weak dollar.

• Because energy stocks typically perform well with a strong dollar.

• Because energy stocks are usually unaffected by currency changes.

• Because energy stocks always outperform other sectors.

What should investors monitor closely for potential impacts on equity portfolios?

• Interest rates

• Currency markets

• Commodity prices

• Real estate trends